KBR joint venture secures two engineering contracts from BP in Azerbaijan

HOUSTON - KBR (NYSE:KBR), a global technology and engineering company with a market capitalization of $6.08 billion and impressive revenue growth of 12.84% over the last twelve months, announced Tuesday that its joint venture with Azerbaijan’s state oil company SOCAR has been awarded two contracts by BP for projects in Azerbaijan.

The SOCAR-KBR joint venture will provide detailed engineering design solutions and procurement services for the Sangachal Terminal Electrification project and the Shah Deniz compression gas field project, according to a company press release. According to InvestingPro analysis, KBR’s strong project execution capabilities have contributed to its robust financial health, with analysts maintaining positive profit forecasts for the current year.

The Sangachal Terminal, Azerbaijan’s largest oil and gas reception terminal, was originally designed by KBR and serves as a connection point between Azerbaijan and European energy markets. The electrification project aims to transition the facility to national grid supply and reduce emissions.

For both projects, SOCAR-KBR had previously completed preliminary work, including front-end engineering design (FEED) for the Sangachal project and both pre-FEED and FEED for the Shah Deniz compression project.

"KBR has been delivering world-scale energy solutions in the region for over three decades and these projects mark a significant step in Azerbaijan’s clean energy security objectives," said Jay Ibrahim, President of KBR Sustainable Technology Solutions.

The company stated that more than 95% of the SOCAR-KBR Baku-based team consists of Azerbaijani engineers, designers and other professionals. The local office will lead the project execution with support from KBR’s global team.

KBR employs approximately 38,000 people worldwide and operates in over 29 countries, serving customers in more than 80 countries. Currently trading near its 52-week low of $43.89, compared to its high of $72.60, InvestingPro analysis suggests the stock may be undervalued, presenting a potential opportunity for investors. For detailed insights and more exclusive tips about KBR’s valuation and growth prospects, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, KBR announced the resignation of Chief Operating Officer Byron Bright, effective July 11, 2025, after 15 years with the company. The company reassured stakeholders that there would be no operational disruptions due to his departure. In a significant development, UBS downgraded KBR from Buy to Neutral, citing concerns over recent negative developments in the Mission Technology Solutions segment, including the cancellation of the HomeSafe contract. This contract, which was expected to generate significant revenue, was formally terminated by the Department of Defense, leading KeyBanc to downgrade KBR from Overweight to Sector Weight. Despite these challenges, Truist Securities maintained its Buy rating on KBR, emphasizing that the termination would have a relatively light impact on the company’s EBITDA for fiscal years 2025 and 2026. The company stated that the HomeSafe termination is not expected to materially affect its adjusted EBITDA outlook for 2025. KBR continues to work with HomeSafe to fulfill existing obligations to TRANSCOM and military families. These developments reflect the ongoing challenges and adjustments faced by KBR in its government-focused business segments.

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