Kentz Rises Most in Nine Months After Oil-Sands Contract Win
Kentz (KENZ) Corp., an Irish oil and gas engineering company, rose the most in almost nine months in London trading after winning a contract from Imperial Oil Ltd. (IMO) for an oil-sands project in Canada.
The contract at the Athabasca project in northern Alberta, which will run until 2016, is “significant” in value, the Tipperary-based company said today in a statement, without disclosing a number.
Kentz climbed 9.2 percent to 412.90 pence at the close, the most since June 19. That values the company at 486 million pounds ($732 million). Trading volumes were more than 14 times the three-month daily average.
The company’s order backlog increased 7 percent last year, it said in January, citing “confidence that we will deliver double-digit earnings growth in 2013.”
The contract may be worth about $200 million, according to an analyst at VSA Capital Ltd.
“Significant” may mean 5 percent to 10 percent of the $2.6 billion order book, Malcolm Graham-Wood, an oil and gas analyst at VSA, said in a note.
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