Shares of KBR Inc. jumped to a new high Monday, after the engineering and services company said it received a $2.8 billion contract for the construction of an Algerian liquid natural gas project.
The Houston-based company's stock surged $2.09, or 7.6 percent, to $29.69 in morning trading. Earlier in the session, it climbed as high as $29.99, topping its prior high of $29.34 set in late June. KBR was spun off late last year from oilfield services company Halliburton Co.
Under the contract, KBR said it will begin work on the 4.5 million ton per year Sonatrach Skikda facility in July.
Goldman Sachs analyst Albert Kabili wrote in a research report that the contract award is a significant positive for KBR, as it eases concern about a lack of recent major wins for liquid natural gas projects. It also boosts KBR's backlog by an estimated 24 percent and will likely drive up earnings expectations for 2008.
Kabili said his earnings estimates for KBR are under review, pending more details on the deal.
Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190.
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