HOUSTON, TX--(Marketwired - July 18, 2016) - KBR, Inc. (NYSE: KBR) announced today it has been awarded a string of defense contract awards, further boosting its global Government Services business which, with the recent acquisition of now-KBRwyle, spans the full spectrum of the life-cycle of aerospace and defense programs.
The awards include two contract extensions with the U.S. Department of Defense and a multi-year contract for the Australian Defense Department, furthering KBR's long and successful record of delivering projects and support to government clients across the world.
For the U.S. Department of Defense, KBR secured two contract extensions for Base Operational Support Services in the Middle East and Africa. In Djibouti, KBR's support contract was extended for the Naval Facilities Engineering Command Atlantic where KBR provides a full spectrum of base operations and maintenance services, life support, and logistics services for a base population of approximately 5,000 personnel. KBR was also awarded a further 12-month extension on its LOGCAP IV contract to provide operational support in the Arabian Peninsula, commencing in September 2016.
Further, KBR secured a five-year contract with the Australian Defense Department -- Capability Acquisition and Sustainment Group (CASG) -- to provide Integrated Support Contractor (ISC) services to the CASG AIR90 Project Office, responsible for the upgrade of military equipment. Among other responsibilities, KBR will upgrade the Secondary Surveillance Radar on selected military equipment to maintain interoperability with the U.S. and NATO and provide engineering, integrated logistic, and other support associated with upgrading a number of fleets, including helicopters, aircraft, specialist ships and land based air defense systems.
"The award of these contracts comes at an exciting time for KBR as our Government Services businesses continues to grow and we see synergistic opportunities with the acquisition of KBRwyle in markets where our large-scale logistics and project management capabilities combine with our highly specialized technical capabilities," said Stuart Bradie, President and CEO of KBR, Inc.
"It is a testament to our reputation for disciplined delivery, high customer satisfaction and unparalleled performance -- often in the most austere environments -- that makes us the customer's first choice time after time," continued Bradie.
The revenue for these three contracts is expected to be approximately $120 million USD which will be booked into backlog for KBR's Government Services business segment in 2Q16.
About KBR, Inc.
KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,800 people worldwide with customers in more than 80 countries and operations in 40 countries across three distinct global businesses:
- Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA
- Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services
- Government Services, incorporating KBRwyle, includes capabilities that span the full spectrum of government mission requirements including research and development, testing, engineering, logistics, deployed operations, and life-cycle sustainment.
KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results. At KBR, we deliver.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.