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Chicago Bridge & Iron Company (CBI)

  • Fri, Mar. 13, 12:38 PM
    • Today's weakness in CBI (CBI -4.6%) appears to be mostly related to news from Scana Corp. (SCG -1.7%) regarding delays and costs related to the construction of nuclear units in South Carolina that CBI is building.
    • SCE&G, Scana’s electric utility, said last night that the cost for completing the new nuclear units at the Jenkinsville plant in South Carolina are likely to rise to $11B from its initial $9.8B price tag, and completion of the Unit 2 reactor will be pushed out three years to 2019.
    • SCG says the delays and related cost increases are due to design and fabrication issues associated with the production of submodules used in construction of the units, and that it is negotiating with CBI and Westinghouse regarding the responsibility for delay costs.
    • Earlier: CB&I's Ballschmiede out as CFO, to be replaced by Flowserve's Taff
  • Fri, Mar. 13, 10:28 AM
    • CB&I (CBI -7.5%) appoints Michael Taff as CFO and executive VP, effective April 1, succeeding the retiring Ronald Ballschmiede.
    • Taff has more than 30 years' experience of financial experience, and joins CBI from Flowserve (FLS -3.5%), where he served as senior VP and CFO, after previously serving as CFO of McDermott.
    • Ballschmiede had been CBI's CFO and executive VP since 2006, and no reason was given for his retirement.
  • Wed, Feb. 25, 10:03 AM
    • Chicago Bridge & Iron (CBI +11.6%) is soaring higher after posting an impressive set of Q4 results after the bell yesterday.
    • The company also forecast 2015 EPS of $5.55-$6.05 on revenues of $14.4B-$15.2B above analyst estimates of EPS of $5.63 on revenues of $14.35B.
  • Wed, Feb. 25, 9:24 AM
  • Tue, Feb. 24, 4:36 PM
    • Chicago Bridge & Iron (NYSE:CBI): Q4 EPS of $1.47 beats by $0.03.
    • Revenue of $3.37B (+12.3% Y/Y) misses by $60M.
    • Shares +3.1%.
    • Press Release
  • Fri, Jan. 30, 10:35 AM
    • Southern Co. (SO -1.7%) says the firms building its new nuclear power plant in Georgia estimate the project will be delayed 18 months, potentially costing it $720M in new charges.
    • Westinghouse Electric and Chicago Bridge & Iron (CBI -12.2%) expect the first reactor at Plant Vogtle will be complete in mid-2019, and the second reactor will come online in mid-2020, SO says in an SEC filing; SO already has been in litigation with the two companies over previous delays and cost increases.
    • SO does not tally its total costs in the filing but says each month of a delay would cost $40M in new capital and financing charges; if the project stretched an additional 18 months, the total could grow to $720M.
    • Deutsche Bank comments that the further delay to be particularly negative for CBI shares and potentially remain an overhang over the near term, given that it may take more than a year to resolve the dispute.
  • Tue, Jan. 27, 11:59 AM
    • The value of new projects obtained by engineering and construction companies could drop 25%-30% in 2015 due to the sharp drop in oil prices, Deutsche Bank says as it downgrades two names in the group, Fluor (FLR -3.1%) and KBR (KBR -3.4%), to Hold from Buy.
    • Many energy-related projects that had been boosting the results of E&C companies are no longer economically viable, and oil price volatility will make it difficult for companies to approve new projects even if they can generate acceptable returns at current oil prices, DB analyst Vishai Shah writes.
    • Fluor and KBR have the greatest risk of reporting weaker than expected 2015 results, and their valuations are higher than average for the sector, Shah says; however, expectations are low for Chicago Bridge & Iron (CBI -1.7%), whose results could benefit from an acceleration in gas-fired power plant projects this year, the analyst says in maintaining a Buy rating on CBI.
  • Dec. 1, 2014, 3:48 PM
    • Fluor (FLR -2.8%), Chicago Bridge (CBI -5.8%), Primoris Services (PRIM -13.6%) and Quanta Service (PWR -6.5%) are all downgraded to Hold from Buy at BB&T, which says the ongoing decline in oil prices could have a ripple effect throughout the energy infrastructure industry.
    • Although shares of each company have been under pressure for several months, the firm says it would wait for the oil situation to stabilize before putting new money to work in any of the names.
  • Aug. 15, 2014, 8:59 AM
    • Chicago Bridge & Iron (NYSE:CBI) +3.7% premarket after Berkshire Hathaway reported a 12% higher stake to 10.7M shares, valued at ~$621M at yesterday’s closing price; CBI shares had tumbled 22% during the June quarter.
    • Among other stocks enjoying an apparent premarket Buffett bounce are two new Berkshire stakes, Now Inc. (NYSE:DNOW) +1.9% and Charter Communications (NASDAQ:CHTR) +1.6%.
  • Jun. 18, 2014, 8:02 AM
    • "CBI's management team operates our company with the absolute highest integrity, and we take great issue with erroneous claims such as these," says CEO Philip K. Asherman. The company notes the author of the negative report is likely short the stock and thus urges readers to view the conclusions skeptically.
    • Q2 results are set for release in late July, and CB&I expects them to be within the ranges of previously issued guidance.
    • Press release
    • DA Davidson upgrades the stock to a Buy from Neutral, citing valuation.
    • Previously: Chicago Bridge & Iron slips on "creative accounting" allegation
    • Shares +1.1% premarket after yesterday's 7.2% decline.
  • Jun. 17, 2014, 1:36 PM
    • "Management has misled shareholders and analysts into believing that nothing is wrong with its Shaw Group acquisition or business," writes Prescience Point, arguing Chicago Bridge & Iron (CBI -2%) used "creative acquisition accounting" to create a $1.56B loss reserve.
    • CB&I, says Prescience, is struggling with certain Shaw contracts that could prove to be severely loss-making, and is using said reserve to mask their impacts.
    • "We believe CB&I will be forced into a goodwill write-down or financial restatement, either of which would trigger debt default, heightening the risk of liquidity crisis or dilutive equity raise." The stock, says Prescience, is worth about $37 per share, about 50% below the current level.
  • Mar. 18, 2014, 2:59 PM
    • 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.
  • Mar. 18, 2014, 12:26 PM
    • CB&I (CBI +4.5%) shoots higher after receiving a $6B engineering and construction contract on the planned Cameron LNG export facility in Louisiana, a $625M deal from Bechtel for work on Chevron’s (CVX) Wheatstone liquefied natural gas project in Western Australia, and a $100M pipe fabrication contract from Enterprise Products Partners (EPD) for a propane project in Texas.
    • Cowen analysts view CBI as their top pick among E&C companies to benefit from the buildout in global petrochemicals and liquefied natural gas, initiating coverage on CBI with an Outperform rating and $98 price target due to its earnings growth and operating stability, exposure to diversified end markets, best in class margins and strong technical operating groups.
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  • Feb. 26, 2014, 10:59 AM
    • Chicago Bridge & Iron (CBI +4.5%) hits a 52-week high after posting strong gains in Q4 and annual earnings and recording a record number of new awards.
    • CBI scored profits of $196.8M in Q4 on $3B in revenues, up from $89.6M in profits a year earlier with $1.5B in revenue; for the full year, CBI earned $454.1M on $11.1B in revenue, up from $301.6M a year earlier on $5.5B a year earlier.
    • New awards for 2013 totaled a record $12.3B - including $5B for engineering, procurement and construction work for the first two trains of the Freeport gas liquefaction project in south Texas - resulting in a backlog of $27.8B by year's end.
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  • Dec. 20, 2013, 10:11 AM
    • Stephens is out with coverage initiations for some construction services names.
    • Jacobs Engineering (JEC +0.4%) initiated at Overweight. Price target is $68.
    • KBR (KBR +0.4%) initiated at Equalweight. Price target is $32.
    • Chicago Bridge & Iron (CBI) started at Overweight. Price target is $94.
    • Fluor (FLR +0.1%started at Equalweight. Price target is $82.
    | 1 Comment
  • Dec. 11, 2013, 8:49 AM
    • CB&I (CBI) reaffirms guidance for 2013, seeing EPS of $4.00-$4.35 vs. $4.16 consensus estimate and revenue of $10.7B-$11.2B vs. $11.17B consensus.
    • Issues in-line guidance for 2014, seeing EPS of $4.80-$5.65 vs. $5.16 consensus estimate and revenue of $12.6B-$13.2B vs. $12.98B consensus. (Investor Day slides)
    • CBI +1.9% premarket.
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Company Description
Chicago Bridge & Iron Company provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries.