Kentz profits rise 52% on new contracts

Irish-Malaysian Engineering group, Kentz said first half pretax profits increased by over 52 per cent after winning contracts…

Irish-Malaysian Engineering group, Kentz said first half pretax profits increased by over 52 per cent after winning contracts from Exxon Mobil and Eskom Holdings.

Kentz, which is based in Tipperary and is active in three continents, mainly in the oil and gas, exploration, and pharmaceutical and chemical industries sectors, said revenues rose 34.4 per cent to $328.6 million.

Over the period Kentz secured contracts for Exxon Mobil's Sakhalin development in eastern Russia and Eskom's Medupi power station in South Africa.

Kentz said its pipeline of contracts was worth $894.5 million at the end of July, compared with $596 million in March.

Hugh O'Donnell chief executive officer said the outlook for the sectors in which Kentz operates "remains very positive". The oil sector accounts for roughly 88 per cent of the company's activities.

"Our customers continue to develop significant projects and engage Kentz for participation in these projects, further strengthening our pipeline of work," Mr O'Donnell said.

According to Mr O'Donnell the company has set aside $65 million to spend on acquisitions and is
Is working on due diligence on one company with the intention of completing an acquisition this year.

Kentz floated on London's Alternative Investment Market in February this year and has risen around 48 per cent since then, giving the company a value of £198 million ($357 million).