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KBR Awarded EPC Services Contract for Koch Nitrogen Urea Expansion


HOUSTON — September 2, 2014 — KBR, Inc. (NYSE: KBR) announced today it has been awarded a reimbursable contract by Koch Nitrogen Company, LLC to provide engineering, procurement, and construction (EPC) services for a new grassroots urea plant, part of a $1.3 billion expansion project by Koch Nitrogen at its Enid, Oklahoma facility. In addition, KBR will provide construction management services for expansion of the existing ammonia plants and site utilities and infrastructure to support the project.
The expansion will increase the plant’s urea and ammonia production capacity by more than one million tons per year. The new urea plant will have an annual urea production capacity of 900,000 tons. Koch Nitrogen’s Enid facility is one of the largest fertilizer production plants in North America.
This contract award is a testament to KBR’s capabilities and solidifies the company’s world leadership in ammonia technology, according to KBR President and CEO Stuart Bradie. Considered a world leader in ammonia technology, KBR has been involved in the licensing, design, engineering and/or construction of more than 230 ammonia plants worldwide.
“KBR has a long history of delivering customer value,” Bradie said. “We’re excited about this major contract award which continues our long relationship with Koch Nitrogen Company, LLC and, at completion, will bring Koch Nitrogen and its customers the benefits of our EPC and fertilizer technology expertise.”
The contract value was not disclosed. Expected revenue from the contract will be included in KBR’s third quarter 2014 backlog of unfilled orders for its Hydrocarbons segment.
About KBR
KBR is a global engineering, construction and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets. For more information, visit www.kbr.com.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance and backlog information, 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/A, 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.
Zac Nagle
Vice President, Investor Relations and Communications
Richard Goins
Director, Corporate Communications