ENGINEERING AND instrumentation specialist Kentz has received new orders worth more than €170 million since September.

Kentz chief executive Hugh O'Donnell said in an operations update yesterday its strong first- half performance continued in the second half, with a strong backlog of work and a growing order book.

"Our backlog continues to be strong, increasing from $894.5 million [€694 million] in July 2008 to $935 million," he said.

"Additionally, since the end of September we have received new orders and letters of intent from our clients totalling $224 million."

Mr O'Donnell added that the group's net cash increased to $201 million at the end of September from $195.5 million three months earlier.

Tipperary-based Kentz designs and supplies control systems for plants involved in oil and gas refining and chemical and pharmaceutical production. It provides these services under contract to its clients.

Commenting on the potential impact of recent falls in oil prices on the business, Mr O'Donnell said the group's clients took a long-term view when considering future developments and evaluated oil prices over time to develop reserves and production.

About two-thirds of the group's revenues come from projects in the Middle East, where it said the cost of exploration and production remains relatively low compared to other regions. Mr O'Donnell said Kentz was well-positioned to continue growing in this market.

He also said very few projects in its pipeline of future work had been delayed or cancelled, and none had had a material effect on the group or its outlook for the rest of this year and 2009.

Last week, the International Energy Agency said oil companies had been postponing or cancelling a growing number of exploration and production projects as a result of falling prices.

Kentz floated on London's Alternative Investment Market earlier this year, netting £48 million €56.5 million) for its shareholders and a further £19 million for the company.