Kentz Expects Order Backlog to Rise 15% on Bidding
Stock Chart for Kentz Corp Ltd (KENZ)
Kentz Corp., an Ireland-based oil and gas engineering company whose customers include Exxon Mobil Corp. and Royal Dutch Shell Plc, forecast its order backlog to rise 15 percent through 2012 from $1.6 billion last year.
Kentz has submitted proposals for contracts worth about $3.8 billion, and will pursue other opportunities to bring the total to $8 billion within 12 to 16 months, said Chief Executive Officer Hugh O’Donnell.
The contracts include “quite a diverse number of prospects from different regions and different types,” O’Donnell said in a phone interview. New clients will possibly be “predominantly upstream oil and gas international companies, blue chip clients across all of our” businesses.
Shares rose 9.2 percent, the biggest gain in almost two years, to a record of 387.5 pence in London after the company said in a statement that it expects full-year revenue and profit to be “significantly ahead” of the market consensus.
The company expects to secure further work on liquefied natural gas projects in Australia, some engineering, procurement and construction contracts in the U.S. and Middle East, a number of new maintenance projects for clients worldwide, and some mining and metal opportunities in South Africa, O’Donnell said.
Kentz had about $200 million in cash at the end of December, part of which it can use for “a couple” of acquisitions this year, O’Donnell said.
“We are looking to develop a number of acquisitions of process technology and engineering service companies as a bolt- on type of acquisition,” he said. “It will be smaller in scale and easier to deliver.”
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