Halliburton's KBR Sets Out
Shares of KBR Inc. are expected to begin trading Wednesday on the New York Stock Exchange. Yes, that KBR.
Long a part of Halliburton Co., Kellogg Brown & Root, or KBR, is moving out of its parent's Houston high-rise this coming week and beginning life on its own after an initial public offering.
KBR has gained a lot of notoriety in recent years, some for what it allegedly did and some for who used to run it: Vice President Dick Cheney once was Halliburton's chief executive. KBR has been the military's top contractor in Iraq, setting up bases, delivering mail and -- through a no-bid contract that has been sharply criticized -- working to get Iraq's neglected oil fields pumping again.
It has also drawn fire for what military auditors say was overcharging the government for delivering fuel, running dining halls and performing other services. For the most part, KBR has resolved its billing differences with the military and emerged with only a few small bruises. But that was before the Democrats took control of Congress.
The new political leadership means that Halliburton's chief critic, U.S. Rep. Henry Waxman, a California Democrat, is all but certain to become chairman of the House Government Reform Committee, a post in which he will wield more subpoena power. Mr. Waxman has already said he plans more oversight of Halliburton's contracted work in Iraq.
Could Mr. Waxman's investigation hurt the company's bottom line? At the very least, potential KBR investors should be concerned about management being distracted by new investigations and hearings. And distractions are a problem: KBR has struggled with overbudget construction projects in recent quarters, and its management will need all the focus it can muster to better control costs. Moreover, with the Democrats in control of Congress and with a new defense secretary, KBR's work in Iraq could dry up more quickly than expected. Last quarter, work in Iraq generated half of KBR's $2.4 billion in revenue and $45 million of its $98 million in operating income.
Still, KBR is priced to move, and interest has been running high. The road show for investors this past week in a New York hotel had to be moved to a larger room to accommodate the expected crowd. At the expected offering price of $15 to $17 a share, KBR is a lot cheaper than its main competitors.
There is a lot to like. The sizzle in the KBR steak is that the company is the dominant global contractor for building liquefied-natural-gas plants -- a red-hot sector of the energy industry. There should be plenty of work for the company as energy behemoths continue to construct these facilities.
The plan is for Halliburton to sell about 20% of KBR through an IPO and retain the rest, which would be spun off to shareholders in coming months.
哈里伯顿旗下KBR即将上市
Kellogg Brown & Root将于周三在纽约证交所上市。是的，它就是那个饱受责难的KBR。
长期以来作为哈里伯顿(Halliburton Co.)的子公司，KBR一直在母公司的庇护下生存，不过它本周就要从哈里伯顿的摩天大楼里搬出来。首次公开募股后，KBR将作为独立公司运营。
这些年KBR招致的骂名不断，其中一部分源于该公司所谓的猫腻合同，另一部分则与其过去的掌舵者有关：副总裁切尼(Dick Cheney)曾是哈里伯顿的首席执行长。KBR一直是军方在伊拉克的主要承包商，业务包括建设基地、邮件递送以及重建伊拉克油田──该合约未经投标，因此受到了人们的强烈谴责。
军方审计人员表示该公司在为政府运输燃料、经营食堂以及提供其他服务时收费过高，这也招致了人们的指责。除了一些小摩擦外，KBR已经基本解决了和军方的收费分歧。不过那都是在民主党夺得议会控制权之前。
如今，议会格局的改变将意味着对哈里伯顿意见最大的加州民主党人亨利?韦克斯曼(Henry Waxman)可能理所当然地坐上众议院政府改革委员会主席的位子。在这个职位上，他将拥有更大的调查权。韦克斯曼已表示，他打算对哈里伯顿在伊拉克的合约项目进行更加严密的监督。
韦克斯曼的调查会不会伤及KBR的利润？至少，KBR的潜在投资者将对公司管理层因新的调查和听证会而分心担忧不已。精力分散的确是个问题：近几个月某些预算超支的建筑项目已经让KBR手忙脚乱，管理层正需要全力以赴地采取措施控制成本。而且，随着民主党掌握国会控制权以及新的国防部长的上任，KBR伊拉克项目的萎缩速度可能要比预想的更快。上个季度KBR在伊拉克的收入占其24亿美元总收入的一半左右，在伊业务运营利润为4,500万美元，达到了9,800万美元运营利润总额的近一半。
不过KBR的股价可能会消化掉这些不利因素，而且人们对KBR一直热度不减。上周在纽约市一家酒店举行的巡回推介会因到场人数过多而不得不改换到大房间举行。从每股15-17美元的预期发行价来看，KBR的市盈率也比主要竞争对手低很多。
还有很多看好KBR的理由。KBR真正的诱人之处在于，该公司是全球主要的液化天然气厂合约建筑商──这可是能源行业一块炙手可热的业务。随着能源巨头们继续扩大产能，KBR还将有很多生意可做。
哈里伯顿将通过IPO出售KBR约20%的股份，保留剩余部分并在未来几个月内陆续分发给哈里伯顿的股东。
Russell Gold
