May 3, 2018 [Tank News International] - CB&I has announced a 78 percent increase in net income to $43.9m in the first quarter compared with the same period last year.
Backlog was $9.4bn, new awards were $1.1bn and revenue was $1.7bn – results that were below the levels of the year-ago quarter due in part to the timing of new award activity.
Solid operating performance in Fabrication Services, Technology and Engineering & Construction (E&C) groups, including no material charges on Cameron LNG, Freeport LNG and Calpine power projects contributed to the increase.
Operating income for the first quarter of 2018 was $107.7m, an increase of 36 percent as compared to the year-ago quarter, driven largely by improved performance in the E&C segment and company-wide cost reduction efforts.
The company also reported it has engaged in a high level of bidding activity, with an attractive prospect list for 2018.
President and Chief Executive Officer Patrick Mullen said: ”We are pleased with the strong execution across all three of our operating groups, relative to the year-ago quarter, which resulted in a 78 percent increase in net income. Our results reflect an increase of 170 basis points in gross margin due to a higher margin mix and the benefits of our $100 million cost reduction program, which was fully implemented as of the end of 2017. The cost reduction program also contributed to a 12 percent decline in selling and administrative expense.”
As previously disclosed, results for the first quarter of 2018 included two non-operating items that totalled $26.1m: Restructuring charges of $5.1m, and excess interest expense of $21m.
For the first quarter of 2018, the E&C operating group’s new awards were $664.9m, down from the year-ago. E&C operating group revenue was $1.4bn compared to $1.3bn in the same period of 2017, up modestly due to increased activity on various projects in the U.S.
The E&C group reported income from operations of $54.8m, up sharply from $5.4m, reflecting improved execution across the group’s portfolio of projects.
The Cameron LNG project in Louisiana was 84 percent complete as of the end of the first quarter of 2018 and is forecasted to be completed in the fourth quarter of 2019.
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