Kentz has €11.4bn of work in pipeline

Kentz — the Irish-founded engineering services group — closed 2013 with a pipeline of outstanding work projects, worth $15.6bn (€11.4bn); up 18% on the previous year.

 Christian Brown: We are starting in a strong position.

In its pre-close trading statement — ahead of the publication of its annual results in late March — Kentz said yesterday its standalone backlog of work was valued at $3.1bn, at year’s end. When the addition of US-based exploration facility solutions provider, Valerus FS — which Kentz bought at the turn of this year — is included, the group’s overall backlog amounts to $3.5bn.

The recently announced acquisition of Valerus will increase Kentz’s exposure to higher value/margin contracts, improve its footprint in the US and give it an increased presence in Latin and South America.

Yesterday’s update also saw Kentz — which specialises in providing infrastructural support services for major oil and gas exploration companies around the world — say that diluted earnings per share, for 2013, should be in line with expectations and reflect double-digit growth on the previous 12 months.

“We are starting the year in a very strong position and foresee the delivery of yet another strong performance in 2014,” group chief executive Christian Brown said.

“2013 has been a very busy year for bidding activity, with record levels of bidding undertaken, adding to the strong growth in our order intake and year-end backlog. Additionally, there are a number of bids outstanding that will be awarded in the first half of 2014,” he added.

Mr Brown also touched on the company’s aforementioned recent US acquisition; saying that the Valerus addition should be earnings enhancing and will help to continue to create future shareholder value.

Kentz used its $400m term-loan facility to complete the acquisition; but noted yesterday that it remains in a strong cash position.

The group finished 2013 in a gross cash position of approximately $245m, providing the business with “a sound financial base from which to support continued growth”.

© Irish Examiner Ltd. All rights reserved

More in this Section

Ireland lags behind in world rankings for women in top IT jobs

Apple talks on possible India facility

Running out of excuses not to cut costly mortgage rates

US embraces marijuana as a mainstream business


You might also like

Breaking Stories

Stocks dip slightly as markets await Federal Reserve decision on rates

This drone can be controlled using a hacked fitness tracker and hand motions

There's a portable microwave going on sale next year

Google's new app gives everyone the chance to be a scientist

Lifestyle

Memories of Jewtown in Cork recalled in poetry collection

Turn off your phone and go to sleep early tonight - you'll thank yourself tomorrow

MAKING CENTS: Plan ahead before you submit housing plans

Recalling the life of Eileen Gray - the Irish mother of Modernism

More From The Irish Examiner