Babcock & Wilcox Secures $13 Million Contract for Environmental Equipment
Babcock & Wilcox Enterprises, Inc. (NYSE: BW), a global leader in energy and environmental technologies, has secured a contract exceeding $13 million. Through its subsidiary, Babcock & Wilcox Canada Corp., the company will provide equipment and services to a North American petroleum refinery, aimed at meeting environmental regulations.
The agreement includes the delivery of 18 high-efficiency, low-nitrogen oxides (NOx) burners, which will help significantly reduce NOx emissions across three units at the refinery. Additionally, Babcock & Wilcox will design a flue gas recirculation system and supply fans and other equipment for one of the units, further reducing emissions.
Stephen Dutkiewicz, Vice President & General Manager of Thermal Projects at Babcock & Wilcox, emphasized the importance of this technology in modernizing the refinery and meeting environmental standards. He highlighted the company’s commitment to supporting the transition to cleaner energy and industrial processes, aligning with North American emissions goals. The equipment supply has already begun, with delivery scheduled for the fourth quarter of 2024.
Headquartered in Akron, Ohio, Babcock & Wilcox is a leading provider of power generation and industrial application solutions worldwide.
InvestingPro Insights reveals that this significant contract reflects Babcock & Wilcox’s dedication to environmental technology solutions. Despite some challenges, such as a negative P/E ratio and cash burn issues, the company has shown growth potential, with a market capitalization of $116.18 million and a notable revenue growth of 30.69% over the last twelve months as of Q3 2023. However, analysts have revised their earnings projections downwards for the upcoming period, indicating potential challenges ahead. Nonetheless, with a 13.04% price total return over the last week, short-term investor confidence in the stock remains strong.
Analyst comment
Positive news. Babcock & Wilcox Enterprises has secured a contract exceeding $13 million to provide equipment and services to a petroleum refinery, aimed at meeting environmental regulations. This reflects their dedication to environmental technology solutions. Despite challenges, the company has shown growth potential. Short-term investor confidence in the stock remains strong with a 13.04% price total return over the last week. The market is expected to respond positively to this contract, but potential challenges ahead may impact earnings projections.
