Kentz Backlog Grows (UK)
Kentz Corporation Limited today released its interim management statement in advance of its Annual General Meeting which is being held today in London.
At the meeting, Christian Brown, Chief Executive Officer of Kentz will give the following update:
“Kentz is pleased to report that the Group has experienced good growth in the first four months of the year and anticipates that the full year performance will be marginally ahead of expectations.
Our backlog has grown to US$2.46bn at the end of April 2012 (31 December 2011: US$2.40bn) and new awards and natural growth in 2012 will support continued revenue growth. Our current prospects comprise a significant number of projects with values up to US$100m with favourable margins and opportunities for natural growth. Historically, Kentz has been very successful in achieving an average of 25% natural growth on contracts and we see this trend continuing in 2012.
Recent contract awards include the integrated commissioning services contract on the Queensland Curtis (QCLNG) project in Queensland, Australia and the US$128m Mechanical, Electrical and Instrumentation contract for Syncrude’s Aurora North Mine Relocation (AMR) Project, in Alberta, Canada.
Our overall pipeline of prospects stands at US$10.8bn at the end of April 2012 and we are confident this will support the continuing growth of Kentz.
Kentz’s business and pipeline of opportunities are made up of a blend of contracts, of different sizes and durations. Our current backlog is approximately 66% reimbursable, 12% unit rate reimbursable and 22% lump-sum. The key is to maintain an appropriate balance between the three Global Business Units (GBUs) and to ensure the risk of contracts is commensurate with the margin opportunity.
Each of our three GBUs are performing well and we continue to see significant opportunities across our service offerings and the sectors and geographies in which Kentz operates.”
LNG World News Staff, May 18, 2012