UPDATE 1-KBR profit doubles, lifted by oil/gas spending

Wed Apr 27, 2011 5:04pm EDT

* Q1 adj EPS 54 cents vs 53 cents expected by Wall St

* Revenue down 12 percent at $2.3 bln

SAN FRANCISCO, April 27 (Reuters) - Engineering company KBR Inc (KBR.N) reported on Wednesday a first-quarter profit that was more than double the previous year, driven by increased spending on oil and gas projects.

First-quarter net profit rose to $105 million, or 69 cents per share, from $46 million, or 29 cents per share, a year ago. The earnings included a 15 cents per share boost from a lower effective tax rate benefit, KBR said.

Excluding that, KBR earned 54 cents per share, whereas analysts had been expecting a first-quarter profit of 53 cents per share, according to Thomson Reuters I/B/E/S.

Revenue declined by 12 percent to $2.3 billion, which was largely due to the anticipated reduction in revenue from KBR's contract with the U.S. military. (Reporting by Braden Reddall; editing by Gunna Dickson)