Chicago Bridge & Iron Company N.V. (NYSE:CBI) Announces Award To License Its Technology At Ethylene Plant In India

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Chicago Bridge & Iron Company N.V. (NYSE:CBI) has proudly announced that it has been awarded the mandate of licensing its technology for use at an ethylene plant located in India.

Chicago Bridge & Iron Company (CB&I) received the award fromHPCL Mittal Energy Ltd. (HMEL) and it involves the basic engineering and license for a 1,200 KTA mixed feeds ethylene plant. The latter is for the Guru Gobind Singh refinery which is located in Bathinda, India. The capacity of the ethylene plant can also be expanded to 1,500 KTA.

The contract involves the integration of the refinery with the ethylene plant as well as recovering refinery offgas and pyrolosis gasoline hydrogenation. It also involves detailed engineering involving CB&I’s highly selective Short Residence Time (SRT) VII cracking heaters.

“During the last 30 years, CB&I has licensed 44 percent of the world’s ethylene production. This award demonstrates HMEL’s confidence in our technology, engineering solutions, and commercial experience,” stated Daniel M. McCarthy, the Executive Vice President of Technology at CB&I.

The technology and infrastructure company recently released its Q3 numbers revealing its earnings per share at $0.41 which was lower than the $0.50 EPS that was estimated by analysts. The CB&I’s revenue for the quarter also underperformed at $1.7 billion compared to the $1.8 billion forecasted revenue. The company currently estimates its EPS for the fourth quarter between $0.50 and $0.60 compared to the consensus estimate of $0.53. it also expects its revenue figures for the fourth quarter to be between$1.8 billion to $2 billion compared to a consensus of $1.85 billion.

Roughly 19 market analysis firms have issued a “Hold” rating on the company’s stock. The revelation that the company failed to hit the analyst estimates affected investor confidence, leading to a decline in the value of the stock following the announcement. CB&I is however confident that it will outperform the analyst estimates that have been set for the fourth quarter especially considering the various business deals that have been announced lately.

CB&I stock closed the latest trading session on Monday at $16.18 after a 0.62 percent gain compared to the value of the stock during the previous close.

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