UK: Kentz Sees Profits Rise

UK Kentz Sees Profits Rise

Kentz Corporation announced its  results for the year ending 31 December 2012.

Financial Highlights

  • Revenue including revenue from JVs up 6% to US$1.56 billion (2011:US$1.47 billion); Including US$150.6m from JV operations (2011: US$101.5m)
  • EBITDA up 22% to US$118.5m (2011: US$97.5m)
  • Profit before tax up 32% to US$104.8m (2011:US$79.4m)
  • Profit before tax margin 7.4% (2011: 6.2% excluding non-recurring costs); Non-recurring listing and senior management engagement costs of US$5.0m
  • Gross cash3 balance of US$223.3m at 31December 2012 (2011: US$238.1m); Gross cash represents total cash at bank and in hand
  • EPS (diluted) 58.05 US¢ up 19% (2011: 48.98 US¢)
  • US$2.57 billion backlog at 31 December 2012 (2011: US$2.40 billion)
  • Proposed final dividend of 9.0 US¢ per share; total 2012 dividend payment of 14.5 US¢ per share, up 18% on 2011

Corporate Highlights

  • Further success in Iraq with the award of three Technical Support Services (TSS) contracts and increased bidding activity evident in the country
  • Engineering capability enhanced with the acquisition of the assets of GCDE’s e-ngineering office in Chennai, India
  • Tush Doshi appointed COO of EPC business unit and Mark Payton appointed as Group Corporate Development Officer
  • Pipeline of opportunities up 32% to US$13.2 billion

Current trading and outlook

  • Two new contracts awarded in early 2013 in Canada:
  • Telecommunications contract with Suncor for the Fort Hills Oil Sands Project
  • Commissioning agreement with Imperial Oil Resources Ventures Limited for services in the Athabasca oil sands which will run until 2016
  • Backlog at the end of February 2013 increased to US$2.73bn, up 6% on the December 2012 position

Commenting on the results Christian Brown, Chief Executive Officer of Kentz said: “We have ended 2012 with confidence that our future outlook continues to be positive. The past twelve months has been another successful period for Kentz where we have continued to expand our operations, develop new client relationships and provide services for some of the world’s largest and most prestigious projects.

“Our strong workforce of 14,500 people in 30 countries continues to execute projects at the highest standards, as evidenced by our industry-leading safety performance. As we adopt our new strategic initiatives, we look forward to the next few years with the confidence that our business will continue to prosper”

LNG World News Staff, March 25, 2013

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