KBR announced its fourth quarter and annual 2014 financial results. Net loss attributable to KBR was $1.24 billion, or $8.57 per diluted share, in Q4 2014.
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This compares to a net loss of $56 million, or $0.38 per diluted share, in the fourth quarter of 2013. Consolidated revenue in the fourth quarter of 2014 was $1.4 billion compared to $1.7 billion in the fourth quarter of 2013.
Technology & Consulting revenue was $68 million, a decrease of $26 million, primarily due to a decline in volume from completed Basic Engineering Design (BED) activities on several projects. Gross profit was $5 million, a decline of $12 million, resulting from changes in revenue estimates at completion on a number of legacy projects.
Engineering & Construction (E&C) revenue was $1,038 million, a decrease of $68 million, while E&C gross profit was $32 million, an increase of $72 million. Revenue declined primarily due to lower progress on large gas-to-liquid and LNG projects as they neared completion during 2014, offset by growth in ammonia, oil and gas projects and activities in Canada.
Gross profit was primarily driven by continued strong performance on two major LNG projects, partially offset by a $22 million net increase in forecast costs to complete certain projects, including a gain on Canadian pipe and module assembly projects from claims settlements and project close out activities.
Equity in earnings of unconsolidated affiliates was $27 million, an increase of $13 million, which reflects continued strong performance on a major LNG project.
Government Services revenue was $111 million, a decline of $126 million, while gross profit was a loss of $60 million, which is consistent with the range of charges outlined in our December analyst presentation. The loss was driven primarily by $46 million in charges relating to the legacy LogCAP III and RIO contracts (included in the restructuring charge schedule attached).
Additionally, the loss reflects $17 million in increased estimated costs to complete two projects where we have not received change orders from clients. If change orders are received, the company will revise the projects' estimates to complete, accordingly.
Government Services equity in earnings of unconsolidated affiliates was $18 million, essentially flat with the prior period and reflects continued strong performance on contracts located in the United Kingdom. ■