Kentz shares soar 9pc after 'significant' profit growth
Published 15/01/2011 | 05:00
Engineering group Kentz said that revenues and profits in 2010 were "significantly ahead" of expectations, sending shares in the Clonmel-headquartered group soaring over 9pc in London yesterday and valuing the group at £451m (€536m).
Chief executive Hugh O'Donnell said that the company was hoping to complete two bolt-on acquisitions this year, while Kentz's order book rose to $1.6bn (€1.2bn) at the end of December 2010 from just under $1.5bn the year before.
Kentz is majority owned by Malaysia's Peremba group and generates a significant part of its revenue from oil companies. Its clients include majors such as Exxon, Shell and Chevron.
It generates about 30pc of its turnover from such oil firms, and the bulk of its revenue is sourced from the Middle East, while it also operates in countries such as Australia, Iraq, Papua New Guinea and Madagascar.
It is involved in providing services to the massive Gorgon gas project off western Australia, which is expected to yield reserves worth about A$50bn (€37bn).
In a trading statement issued yesterday, Kentz said that earnings before interest and tax and pre-tax profit margins for 2010 would be in line with market expectations.
Mr O'Donnell said he expected the company's order book to grow by about 15pc this year.