Boston, MA 06\/06\/2014 (wallstreetpr) \u2013 KBR, Inc. (NYSE:KBR)<\/b> said it has outlined possible terms to settle with Africa Development Bank Group (ADBG) over corruption claims in Nigeria. The claims touch on the liquefied natural gas project on Nigeria\u2019s Island of Bonny.<\/p>\n
The Houston-based KBR partnered with three other companies headquartered in Portugal in the Bonny Island project. The three companies have also been smeared by the corruption allegations. On its part, KBR could end up paying $6.6 million to settle the claims. ADBG invested about $100 million in the LNG project. KBR may turn to its strong balance sheet to settle the claims.<\/p>\n
Bonny Island has been a ground for losing money for KBR, Inc. (NYSE:KBR). The company in 2009, then operating as subsidiary of Halliburton Company (NYSE:HAL), took a financial slap of $579 million to settle with the U.S. over corruption claims in Bonny Island. The parent company paid the penalties.<\/p>\n
No cause for alarm<\/b><\/p>\n
Lawsuits are a common phenomenon in the corporate world and KBR\u2019s troubles are not isolated cases. On the broader picture, the company appears promising for investors seeking about a good turnaround story.<\/p>\n
The company is managing its turnaround under a new Chief Executive Officer. The company provides engineering, construction and services that support a wide range of sectors that include energy, industrial and government services. The past five years have shown a steady decline in the company\u2019s revenue mainly because of the decline in defense contracts in. However, amid declining revenue, gross profit margin has increased in the past five years.<\/p>\n
Undervalued opportunity<\/b><\/p>\n
KBR, Inc. (NYSE:KBR) has enough support to achieve a speedy turnaround. The company holds about $1.1 billion in cash and its long-term debt is also low. As such, the company\u2019s balance sheet is moving from strength to strength as the company wins new business opportunities.<\/p>\n
The increasing adoption of natural gas in running industrial machines as opposed to diesels provides a key business opportunity for KBR. Yet the company is lowly valued because of a one-time high-profile error in its financial statement and the two negative bottom line surprises.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/06\/2014 (wallstreetpr) \u2013 KBR, Inc. (NYSE:KBR) said it has outlined possible terms to settle with Africa Development Bank Group (ADBG) over corruption claims […]<\/p>\n","protected":false},"author":32,"featured_media":16304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3224,3226],"stock_ticker":[],"class_list":["post-24933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-kbr-inc-nysekbr","tag-nysekbr","entry"],"acf":[],"yoast_head":"\n