Chicago Bridge and Iron 2Q15 Earnings Call Notes

A sample of new awards for the quarter

“New awards totaled $2.8 billion for the quarter and included a diverse mix of size, location, and end markets. Significant awards included a confidential client combined cycle gas turbine power project in the U.S. for $600 million, several maintenance services awards in North and South America, engineered products in Russia and Mexico, and in the U.S. scope increases for our large nuclear projects, as well as a variety of technology and fabrication awards globally. This mix underscores the benefits of our diversified offerings versus pure EPC models.”

Continue to believe that our stock is a great value

“We’re also pleased to report that we have repurchased over 4 million shares in the past few weeks, almost half the stock used for the Shaw transaction. And we’ll continue to be in the market with the expectation to spend up to our $200 million cap within the week. We continue to believe that our stock is a great value,”

Long term backlogs got boost from project with Anadarko in Mozambique

“our long-term backlog projections got a real boost this quarter when we were selected by Anadarko Petroleum Corporation along with our joint venture partners Chiyoda Corporation and Saipem to design and construct process and ancillary infrastructure associated with their LNG development program in Mozambique. In the fourth quarter, we expect to book around $3 billion, which represents our share of the initial phase of the project.”

Technology segment has been most impacted by volatile oil and gas prices

“when we first talked about where our company may be impacted by volatile oil and gas prices, we talked about Technology as certainly, in some parts of the world, being subjected to that softness. And that’s what we’ve seen. Russia and China are a big part of our markets for many of our technologies. And of course with the foreign exchange and the ruble to the dollar as well as the sluggishness in the Chinese economy, many of those opportunities that we saw in the first half of the year seem to be shifting to – are shifting to the right.”