QUOTE AND NEWS
Market Intelligence Center  Aug 10  Comment 
KBR (KBR) presents a trading opportunity that offers a 7.27% return in just 130 days. A covered call on KBR at the $18.00 level expiring on Dec. '15 offers an assigned return rate of 7.27% or 20.41% annualized. This trade offers 8.21% downside...
TheStreet.com  Aug 6  Comment 
NEW YORK (TheStreet) -- Shares of KBR   are closed higher by 3.52% to $18.83 on Thursday afternoon, following a ratings upgrade to "neutral" from "underperform" at Bank of America/Merrill Lynch. KBR has balanced cycle risk through its...
Wall Street Journal  Aug 4  Comment 
Engineering company KBR Inc. swung to a profit for the June quarter, helped by cost cuts and the recent sale of its building group unit.
Market Intelligence Center  Jul 24  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on KBR (KBR) that includes 9.68% downside protection. Sell one contract of the Jan. '16 $17.00...
OilVoice  Jul 16  Comment 
Subsea 7 S.A. Oslo Boslashrs SUBC ADR SUBCY announced today that it has signed an agreement to form an alliance with Houstonbased KBR Inc. and its wholly owned subsidiary Granherne Inc. to
Benzinga  Jul 6  Comment 
KBR announced today that it has agreed to enter into two new partnerships with Bernhard Capital Partners (BCP). The first agreement will establish a new, equally owned and managed company, Brown & Root Industrial Services. KBR's Industrial...
Market Intelligence Center  Jun 26  Comment 
KBR (KBR) is a good candidate for a covered call at the $19.00 level. The Dec. '15 call at that price should fetch a credit of about $2.15, which means the entire position has a net debit of about $17.84. This trade has 6.95% downside protection....




RELATED WIKI ARTICLES
 

KBR, Inc. (KBR) is an international construction, engineering, and services company supporting the energy, government, and civil infrastructure sectors.[1] The Company operates in four segments:Hydrocarbons; Infrastructure, Government & Power ("IGP"); Services; and Other.[1] Revenue from operations in Iraq were 29%, 35%, and 43% of revenue in 2010, 2009, and 2008 respectively, marking decreasing revenues as the war in Iraq winds down.[1] Despite these losses, KBR is partially sheltered from the recession in the United States as a result of extensive operations abroad in countries such as Kazakhstan, Saudi Arabia, and Australia.[2]

Business Growth

Almost 80% of KBR's revenue comes from operations abroad, including operations in Iraq and Afghanistan.[2] As the wars in these two theaters come to an end, revenue will decrease. Revenue from IGP, the segment that deals with contracting in war zones, decreased by 32% between 2009 and 2010.[1] Revenue decreased from $6.3 billion to $4.3 billion in 2009 and 2010 respectively.[1]

Trends and Forces

Infrastructure, Government and Power Revenue Contingent Upon Government Spending

Approximately half of KBR's revenues come from government contracts in war zones such as Afghanistan and Iraq.[1] As operations in Iraq came to an end, KBR incurred a $2 billion loss as a result of decreasing U.S. military need.[1] Furthermore, as international allies end their operations in these theaters, they will have to rely on KBR less for material support.[1]

The Effects of the U.S. Recession are Partially Offset by Operations Abroad

Revenue from international operations has increased to nearly 80% of KBR's total earnings.[1] Though KBR is largely reliant on U.S. and Western government contracts, it has expanded into areas such as Central Asia and the Persian Gulf.[2] These projects namely include building infrastructure for emerging nations; KBR has announced multi-billion dollar contracts to help build mines in Australia and with Rio Tinto and Hancock Prospecting.[2]

Competition

KBR competes directly with a growing industry of government contracts that emerged to take advantage of spending in the aftermath of the terrorist attacks of 9/11, as well as traditional engineering and construction companies. These companies include:

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 KBR 2010 Annual Report
  2. 2.0 2.1 2.2 2.3 KBR ranked No. 10 on the Washington Technology 2011 Top 100
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