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

|By:, SA News Editor

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.