Kentz Seeks Colombian Oil Contracts, Further Canadian Expansion

Kentz Corp., an Irish oil and gas engineering company, plans to expand into Colombia as it seeks further growth opportunities in Canada.

“I’d watch the Colombian environment,” Chief Executive Officer Christian Brown said today on a conference call with analysts. “We’ve seen more opportunities in Colombia.”

Colombia has raised oil output 80 percent since 2008 as army victories over guerrillas opened up swathes of countryside to investment. Kentz said earlier this month it won a contract from Imperial Oil Ltd. (IMO) for an oil-sands project in Alberta, Canada, which will run until 2016. Another area of focus is the Dominican Republic, the CEO said.

Net income climbed to $69.7 million in 2012 from $58.9 million a year earlier, the Tipperary-based company said today in a statement. The order backlog rose 6.9 percent to $2.57 billion at the end of 2012 and stood at $2.73 billion at the end of last month, it said.

The results “underline a period of exceptional growth in revenue and earnings,” according to a note by Investec Plc (INVP), which has a buy rating on the stock.

Kentz rose 2.7 percent to 426 pence as of 11:55 a.m. in London trading.

The company increased its full-year dividend by 18 percent to 14.5 cents a share.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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