KBR Joint Venture Selected to Deliver Major Contract for United Kingdom Ministry of Defence
HOUSTON - (February 2, 2016) - KBR, Inc. (NYSE: KBR) announced today it has been awarded a major contract to support Ascent Flight Training in the delivery of the United Kingdom Military Flight Training System (UKMFTS) program with the UK Ministry of Defence (MOD), under a Joint Venture with Elbit Systems named Affinity. The UKMFTS program is an innovative partnering agreement between UK Front Line Commands, UK MOD, Ascent and other leading industry partners to deliver aircrew training for the 21st century.
KBR's joint venture with Elbit Systems-Affinity Flying Training Services-has been appointed to optimise the fixed wing flying training provision for the UK MOD and to reduce the cost of pilot training. Affinity will procure, operate and maintain aircraft, and aircraft related infrastructure, through to 2033. The training aircraft will be the Grob G 120TP 'Prefect' for elementary flying training, the Beechcraft 'Texan' T-6C for basic flying training, and the Embraer 'Phenom' 100 for multi-engine pilot training.
"We are excited to be a part of this significant project and to continue to grow and maintain a substantial presence in the United Kingdom," said Stuart Bradie, KBR President and CEO. "This win is indicative of KBR's strategic commitment to focus on long-term services contracts with annuity streams in its Government Services segment particularly for the UK Government."
Affinity, under the leadership of Managing Director Iain Chalmers, will manage and deliver the full fixed wing training aircraft fleet and maintenance program. Affinity's service will support the UKMFTS desire to download training tasks from front-line aircraft to cost effective training aircraft and provide the required step-change in aircraft turn around and scheduling to support optimisation of aircrew training hours. Thirty-eight modern, glass cockpit aircraft will be delivered in a phased approach over the next three years comprising 23 Grob G 120TP 'Prefects', 10 Beechcraft 'Texan' T-6Cs s and 5 Embraer 'Phenom' 100 jets-all featuring digital cockpits, exposing students at an early stage to the technologies they will rely on at the operational level.
Revenue associated with this project is estimated to be around £500 million which will be split evenly between the two joint venture partners. Approximately £250 million in revenue from this project will be booked into the backlog of KBR's Government Services segment in Q1 of 2016.
About KBR, Inc.
KBR, Inc. is a global technology, engineering, procurement and construction company serving the hydrocarbons and government services industries, employing approximately 25,000 people worldwide with customers in more than 70 countries and operations in 40 countries across three distinct global businesses:
- Technology & Consulting, including proprietary technology in refining, ethylene, ammonia and fertilizers, and gasification; and niche consulting and know-how through subsidiaries Granherne, Energo and GVA
- Engineering & Construction, including Offshore Oil & Gas; Onshore Oil & Gas; LNG/GTL; Refining; Petrochemicals; Chemicals; differentiated EPC, and Industrial Services
- Government Services, including programme management and long term annuity contracts
KBR is proud to work with its customers across the globe to provide technology, value-added consulting services, integrated EPC delivery and Long Term Industrial Services to ensure consistent project delivery with predictable results. At KBR, we deliver.
Kellogg Brown & Root Ltd, operating from its UK headquarters in Surrey, operates on a global scale working in different sectors delivering diverse and challenging projects.
Kellogg Brown & Root Ltd is a major Programme Management Contractor delivering some of the world's most challenging projects in the UK and overseas. Please see our website for reference projects.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
For further information, please contact:
Vice President, Investor Relations
Director, Global Communications & Government Relations
UK media contact regarding this announcement:
Andrea Newman | External Affairs Director
KBR Government Services (EMEA)
m: 07880 400260
t. 01372 864655
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Source: KBR, Inc. via Globenewswire