KBR announced today that its first quarter 2012 net income was $91 million, or $0.61 per diluted share, compared to net income of $105 million, or $0.69 per diluted share, in the first quarter of 2011.
Consolidated revenue in the first quarter 2012 was $2.0 billion compared to $2.3 billion in the first quarter of 2011. Operating income in the first quarter 2012 was $112 million compared to $144 million in the prior year first quarter.
“KBR’s first quarter performance was consistent with our expectations,” said Bill Utt, Chairman, President, and Chief Executive Officer of KBR. “ In several of our end markets, project opportunities are beginning to accelerate which should drive stronger operating results through the balance of the year and into the future.”
Hydrocarbons Results
Hydrocarbons revenue was $1.1 billion, up $69 million, or 7%. Hydrocarbons job income was $136 million, up $11 million, or 9%.
– Gas Monetization job income was $79 million, up $15 million, or 23%, primarily related to the start-up activities on the newly awarded Ichthys LNG project and increased activity on other LNG projects. Partially offsetting this increase was lower work volumes on the Skikda LNG and Pearl GTL projects. The increase included the receipt of a $9 million restitution payment from Jack Stanley related to the resolution of the FCPA matter which was substantially offset by an $8 million gain from the Tangguh LNG exit settlement with KBR’s former project partner in the first quarter 2011.
– Oil and Gas job income was $23 million, down $1 million, or 4%, primarily related to the completion or near completion of several projects including the CLOV floating production, storage, and offloading (FPSO) vessel and Engevix projects. Partially offsetting the decrease was higher work volumes on the Shah Deniz FEED and Quad 204 detailed design work.
– Downstream job income was $14 million, down $5 million, or 26%, primarily related to lower volumes on projects in the Middle East that are nearing completion and lower volumes on a refinery project in Africa. Partially offsetting the decrease was increased profits from projects in the United States and the new KBR-AMCDE entity in Saudi Arabia.
– Technology job income was $20 million, up $2 million, or 11%, primarily related to the progress on a proprietary equipment project in Brazil and several license and engineering projects in Egypt, China and Russia. Partially offsetting the increase was the completion of engineering services on an ammonia project in Brazil.
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LNG World News Staff, April 26, 2012