CBI

Chicago Bridge & Iron Company

Energy, Industrial/Transportation


Presented:06/18/2013
Price:59.92
Cap:$6.41B
Current Price:16.39
Cap:N/A

Presented

Date06/18/2013
Price59.92
Market Cap$6.41B
Ent Value$7.99B
P/E Ratio9.26x
Book Value25.40
Div Yield0.3%
Shares O/S107.04M
Ave Daily Vol1,900,000
Short Int2.35%

Current

Price16.39
Market CapN/A
Chicago Bridge & Iron Company N.V., an energy infrastructure focused company, provides conceptual design, technology, engineering, procurement, fabrication, construction, and commissioning services to customers in the energy, petrochemical, and natural resource industries worldwide. The company operates in three segments: Steel Plate Structures, Project Engineering and Construction, and Lummus Technology. The Steel Plate Structures segment offers engineering, procurement, fabrication, and construction services, including mechanical erection services for the hydrocarbon, water, and nuclear industries. This segment’s projects include above ground storage tanks, elevated storage tanks, liquefied natural gas (LNG) tanks, pressure vessels, and other specialty structures, such as nuclear containment vessels. The Project Engineering and Construction segment provides engineering, procurement, fabrication, and construction services for upstream and downstream energy infrastructure facilities. This segment’s projects comprise LNG liquefaction and regasification terminals, gas processing plants, refinery units, and petrochemical complexes, as well as a range of other energy-related projects. The Lummus Technology segment offers licenses, services, catalysts, and proprietary equipment for the hydrocarbon refining, petrochemical, and gas processing industries. Chicago Bridge & Iron Company N.V. was founded in 1889 and is headquartered in The Hague, the Netherlands.

Highlights

The presenter is long shares of CBI, and sees the company as well-positioned to benefit from what he expects to be a robust capex cycle for power and petrochemical companies, the ongoing shale boom, and NGL/ LNG projects. In August of 2012, CBI announced its intention to acquire Shaw Group for a 70% premium to its value at the time. The presenter’s firm owned shares of Shaw, and transitioned the position to CBI as its shares sold off following the announcement (due to the market’s concern about the price tag of the deal).

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Idea Discussion

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