Seeking Alpha

$6B contract win sparks upward revision for CBI, downward for Fluor

  • More contract victories are within sight for Chicago Bridge & Iron (CBI +5%) after winning a trio of new contracts, including a $6B contract to build a liquefied natural gas facility in Louisiana, Deutsche Bank says.
  • The award of the Cameron LNG project could provide upside to the current new award estimate of $13.6B for 2014, and the contract win further supports CBI as a leader in liquefied natural gas projects, the firm says; the company is in the running for Golden Pass LNG ($10B), Anadarko Mozambique LNG ($15B) and Russia Far East LNG ($15B), all of which probably will be awarded in 2015.
  • As for Fluor (FLR +2%), which lost out on the Cameron LNG deal, Deutsche Bank's probability weighted new award estimate for the project was $1.4B, which suggests that 2014 new awards could total $24.6B vs. current estimate of $26B.
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Comments (2)
  • Hoang6
    , contributor
    Comments (345) | Send Message
     
    Always study what Buffett is getting into!
    18 Mar 2014, 03:31 PM Reply Like
  • Grant Payne
    , contributor
    Comments (329) | Send Message
     
    I'll second that... Seems so simple yet genius, his move to get into CBI a few years ago. Recovering economy + energy boom + new construction = great prospects for well positioned construction company. Just had to dig for the best one.
    18 Mar 2014, 04:41 PM Reply Like
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