Kentz Corporation Limited Interim Financial Results 2011

 
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Kentz Corporation Limited Interim Financial Results 2011 - 30 August 2011

London, Tuesday 30 August 2011: Kentz Corporation Limited (the “Company” “Kentz”), the holding company of the Kentz Engineering and Construction Group, today announces its unaudited Group results for the six months ending 30 June 2011.

Financial Highlights

  • Revenue in the first half of 2011 increased by 48.2% to US$643.5m (H1 2010: US$434.3m)
  • Profit before tax increased by 49.8% to US$37.7m (H1 2010: US$25.2m)
  • Profit before tax margin increased to 5.9% (H1 2010: 5.8%)
  • EPS (basic) 26.86 US cents up 79.7%. EPS (diluted) 26.05 US cents. (H1 2010: (basic) 14.95 US cents and (diluted) 14.72 US cents)
  • Good backlog position of US$1,569.9,m* as of the end of June 2011 (Dec 2010: US$1,602.6m*) further strengthened to the end of July to US$2,391.1m**
  • The Directors have approved an interim dividend of 5.0 US cents per share up 67% (H1 2010: 3.0 US cents) payable in October 2011

* Includes Kentz’s share of Gorgon LNG construction village joint venture

** Includes Kentz’s share of Gorgon LNG construction village and Gorgon MEI joint ventures

 

Operational Highlights

  • Continued expansion in the Australian operations has helped produce orders on hand in this country of over US$1,167m with visibility until 2015
  • Acquisition of RNE Engineering and Projects (Pty) Limited, a leading supplier of engineering services, for a total cash consideration of approximately US$10m over a period of four years 
  • Strong growth in the mining and metals operations, driven by good project progress in Southern Africa and the Dominican Republic and new awards in the Middle East
  • Creation of an Asset Enhancement Services offering for clients including brownfield engineering, maintenance and turnaround, and operations support under the Technical Support Services Business Unit
  • Award of a US$2.3bn contract by Chevron Australia, in joint venture with CB&I, for the mechanical, electrical and instrumentation (MEI) work on the Gorgon Project on Barrow Island, Western Australia. Kentz’s 35% share of this award provides visibility of future work through until 2015
  • Award of US$35m contract by the National Petroleum Refiners of South Africa (Natref) at the Natref Crude Refinery in Sasolburg for shutdown management and execution over a five year period
  • Signed three year Framework Agreement with Shell to provide services in executing plant change requests at Pearl GTL in Ras Laffan, Qatar.  Further brownfield engineering and plant modification contracts in Qatar at RasGas and Qatar Gas facilities
  • Award of a US$33.6m procurement, construction and commissioning contract for a copper processing plant at Bariq Mining’s new copper mine at Jabal Sayid in Western Saudi Arabia
  • EPC contract award worth in excess of US$30m by Abu Dhabi Gas Industries Ltd (GASCO) to replace the existing emergency shutdown system and associated field instrumentation at Habshan 0 and Habshan 1 plant
  •  Following significant recent awards current prospects sit at US$3.24bn as at the end of July 2011, compared to US$3.70bn as at March 2011
  • Delays experienced at the Medupi Power Station project in South Africa due to site unrest and nationwide strikes. Provision in place to cover cost to Kentz

Current Trading and Prospects

  • Record backlog as at the end of July 2011 was US$2391.1m*, an increase of 49.2% since year end December 2010
  • The order intake to the end of July 2011 was US$1,559.0m compared to US$1,264.9m for full year 2010
  • Successful graduation to the Main Market of the London Stock Exchange
  • We anticipate delivering comparable revenue and margin weightings for the second half of the year
  • Following our strong trading position during the first half of 2011 and our continued positive trading since the end of June we expect to materially exceed our earlier targets for the full year

* Includes Kentz’s joint venture share of Gorgon LNG construction village and MEI contracts

Commenting on the results Hugh O’Donnell, Chief Executive Officer of Kentz said:  “Kentz continued its strong performance in the first half of 2011 delivering a number of key developments for the Group. These included expanding our Asset Enhancement Service offering to clients, completing the acquisition of engineering and project management company RNE, and exceptional delivery in our mining and metals business. The backlog continues to strengthen and it is particularly pleasing to report a substantial growth in visibility of orders on hand following the award of the significant Gorgon MEI contract in July. Kentz is well-positioned through its unique spread of service offerings to align with the needs of core clients as well as capitalise on new opportunities with leading oil and gas and resource customers across their global operations.”

 To view full statement, go to the Investor News section of the website.

 

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