Analysts proved right as Kentz shares soar
Published 19/01/2013 | 05:00
SHARES in Clonmel-based international engineering services firm Kentz soared over 9pc yesterday after it said it expects earnings per share for 2012 to be in line with analyst estimates.
The company also said that its order backlog at the end of December stood at $2.57bn (€1.9bn). That's 7pc higher than at the end of December 2011.
It added that its pipeline of prospects jumped 32pc at the end of 2012 to $13.2bn from $10bn a year earlier.
Chief executive Christian Brown said 2012 had been a successful one for Kentz. He added that over 65pc of its target 2013 revenues are already under contract.
"Our success in growing our backlog and sales pipeline is underpinned by our ability to successfully execute projects and secure repeat business from our major clients," he said.
"Against this backdrop we have also added further opportunities to our pipeline of prospects, all of which gives us excellent earnings visibility and confidence that we will deliver double-digit earnings growth in 2013."
The company took in just over $1.7bn worth of orders in 2012 and releases its full-year results in March. It acknowledged the business climate remains tough.
"Despite this climate, having over 65pc revenue cover from orders on hand is in line with our expectations and also with prior years' experience," the company said.
"This achievement, coupled with the continuing solid margin levels supports our confidence in achieving our targets in 2013."
Kentz works on projects around the world from Russia to Australia. Its clients include a range of oil and mining majors including Shell and Rio Tinto.