KBR Wins General Maintenance Services Contract from SATORP
KBR has secured a 7-year contract from Saudi Aramco TOTAL Refining and Petrochemical Company (SATORP), with an option for a 3-year extension, to provide General Maintenance Services at the Jubail refinery in Saudi Arabia. The scope includes preventive, predictive, and shutdown maintenance, aimed at optimizing costs and achieving top quartile plant performance. This partnership emphasizes KBR's commitment to Saudization and a Zero Harm safety culture. The company has a 70-year track record in the downstream industry, delivering complex maintenance projects globally.
- Awarded a 7-year contract with a potential 3-year extension, enhancing long-term revenue prospects.
- Focus on cost optimization and top quartile performance may lead to improved operational efficiency.
- Reinforces KBR's long-standing partnership with SATORP, enhancing strategic position in the region.
- Dependence on SATORP for revenue may expose KBR to risks related to potential contract disputes or economic downturns.
- Challenges in achieving ambitious performance targets could impact profitability.
HOUSTON, April 20, 2022 /PRNewswire/ -- KBR (NYSE: KBR) announced that it has been awarded a 7-year contract with an option to extend for another 3 years, for the provision of General Maintenance Services (GMS) by Saudi Aramco TOTAL Refining and Petrochemical Company (SATORP), for its project in Jubail, Kingdom of Saudi Arabia.
Under the terms of the contract, KBR will provide preventive, predictive, corrective, and shutdown maintenance services at the refinery, with a focus on continuous improvement and sustainable asset performance. By integrating lessons learned from a decade-long partnership, KBR aims to achieve top quartile plant performance while optimizing costs.
"We are excited to continue building on our longstanding partnership with SATORP. This contract marks the beginning of a broader and increasingly strategic journey for SATORP, and KBR is proud to deliver world-class solutions using the industry's best maintenance and reliability practices," said Jay Ibrahim, KBR President, Sustainable Technology Solutions.
Through this partnership, KBR reaffirms its commitment to Saudization and maintaining a Zero Harm safety culture at the refinery.
KBR has been a pioneer in the downstream industry for over 70 years and has delivered several large-scale maintenance projects for some of the world's largest and technically complex downstream facilities.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 28,000 people performing diverse, complex and mission critical roles in 34 countries.
KBR is proud to work with its customers across the globe to provide technology, value-added services, and long- term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
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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 significant adverse impacts on economic and market conditions of the COVID-19 pandemic and the company's ability to respond to the resulting challenges and business disruption; the recent dislocation of the global energy market; the company's ability to manage its liquidity; 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; 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; the possibility of cyber and malware attacks; 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.
The company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that the company has identified that may affect its business, results of operations and financial condition. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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SOURCE KBR, Inc.
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