KBR Statement on SFO Investigation
HOUSTON (April 28, 2017) KBR, Inc. (NYSE: KBR) today made the following statement about the recent announcement of an investigation by the U.K. Serious Fraud Office (SFO).
In 2016, KBR disclosed that the U.S. Department of Justice ("DOJ") and the Securities and Exchange Commission ("SEC") are conducting investigations of Unaoil, a Monaco based company, in relation to international projects involving several global companies, including KBR, whose interactions with Unaoil are a subject of those investigations. Earlier this month, KBR received notice from the SFO that they are investigating the same facts and circumstances as the ongoing DOJ and SEC investigation. Following the disclosure of the SFO notice in our recent filing, in line with normal SFO practice, the SFO has issued a press release concerning its investigation.
As is customary, KBR is conducting its own internal investigation as well as cooperating with the DOJ, SEC, and the SFO in their investigations, which include the voluntary submission of information and compliance with formal document requests.
As has been reported previously, following our 2009 guilty plea and settlement with the DOJ and SEC over the legacy TSKJ matter KBR was under a DOJ-approved monitorship during which our compliance program was significantly enhanced and now is extremely robust. We conducted a thorough review of all international business relationships at the time of the monitorship and only continued with those parties, including Unaoil, that passed our rigorous review and agreed to adhere to all applicable anti-corruption laws.
At KBR, we believe that conducting business safely, honestly and with integrity is not just the right thing to do; it is the foundation of any lasting business success. We are proud of KBR's compliance program, Code of Business Conduct, and our culture of integrity.
KBR's Code is posted at kbr.com on the COBC website. Translations in multiple languages are availablehere.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle within the Government Services and Hydrocarbons sectors. KBR employs over 34,000 people worldwide (including our joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:
- Government Services, serving government customers globally, including capabilities that cover the full life-cycle of defense, space, aviation and other government programs and missions from research and development, through systems engineering, test and evaluation, program management, to operations, maintenance, and field logistics
- Technology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining; gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream consulting
- Engineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining; petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services); offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program management
KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
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:
Senior Vice President, Investor Relations
Marit Babin Stout
Vice President, Global Communications & Government Relations