This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chicago Bridge & Iron Building on Growth Foundation With More Deals

Stocks in this article: CBI FLM FLR KBR OXY EPD CVX CHYCY XOM APC

NEW YORK (TheStreet) -- After spectacular performance in 2013, including triple-digit growth in revenue, Chicago Bridge & Iron Company (CBI) recently announced new contracts worth more than $6 billion.

Building on its strong foundation, the company is also in a good position for growth thanks to its massive $27 billion backlog and a favorable business environment. Its shares, currently trading around $83, have risen by 42% in the last 12 months, easily outperforming its peers in the broader Engineering and Construction industry ETF (FLM), which has risen by 19% in the same period.

The company's performance las year included record revenue that more than doubled to $11.09 billion from $5.48 billion in the prior year. Meanwhile, CB&I's net income increased to $454 million in 2013 from $301 million in 2012.

CB&I earnings have risen from $1.79 per share in 2009 to $4.23 per share in the previous fiscal year. Analysts think CB&I's earnings could grow to $5.96 per share in 2015.

Although the company reported a drop in gross profit margin in its previous quarter -- from 12.9% in 2012 to 11.3% in 2013 -- the company's margins have improved by 70 basis points sequentially. Moreover, CB&I is far more profitable than its peers Fluor Corporation (FLR) and KBR (KBR), which reported gross margins of 5.34% and 4.87%, respectively.

CB&I's backlog has risen by a massive 154% $27.8 billion by the end of 2013 after it received new contracts worth $12.3 billion. Some of the new projects include the Freeport LNG plant, construction on ethylene plant for Occidental Petroleum  (OXY) and a nuclear power generation project in China.

The huge increase in CB&I's backlog is in stark contrast to its competitors Fluor and KBR. By the end of 2013, Fluor's backlog shrunk 3.5% from the prior year to $14.4 billion while the size of KBR's backlog fell by 8.6% to $34.9 billion.

In short, this was the best year for the CB&I in its 125 years of operations.

On March 18, CB&I announced two new contracts, worth more than $725 million, with the oil pipeline company Enterprise Product Partners (EPD) and with the construction company Bechtel. The contract with Enterprise is worth more than $100 million and involves fabrication of a new propane dehydrogenation unit in Mont Belvieu, Texas. The contract with Bechtel, valued at $625 million, is related to the Wheatstone Project in Western Australia operated by Chevron (CVX).

These contracts came just a day after a massive $6 billion deal in which CB&I, working with Japanese engineering giant Chiyoda Corp. (CHYCY), will construct Cameron LNG's Cameron Liquefaction Project in Hackberry, Louisiana. This deal will significantly enhance the company's footprint at the Gulf Coast.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs