Profits surge by 50% at Kentz

PROFITS AT engineering and instrumentation group Kentz grew 50 per cent to almost $38 million (€26.36 million) in the first six months of this year, according to figures released by the company yesterday.

Kentz said revenues in the first half of 2011 increased by 48 per cent to $643.5 million from $434.3 million during the same six-month period last year.

The Irish-based, London-listed company provides instrumentation and engineering services for the global oil, mining and pharmaceuticals industries.

It reported that profits before tax in the first six months of this year were up 50 per cent at $37.7 million from $25.2 million during the same period in 2010.

Basic earnings per share jumped 80 per cent to 26.86 cents from 14.95 cents.

The directors are proposing to pay an interim dividend of five cents a share, 66 per cent more than the 2010 payout of three cents a share.

Kentz said it continued to grow its Australian business during the first half of the year and it now had contracts worth more than $1.1 billion there.

The overall value of the company’s backlog (contracted work in progress and confirmed new orders) came to $1.57 billion at the end of June, and by the end of July it had reached $2.4 billion. This figure included the company’s Gorgan natural gas contract in Australia.

Kentz graduated from London’s Alternative Investment Market to a full listing during the first half of the year.

Kentz chief executive Hugh O’Donnell said growth had been particularly marked during the second three months of the year.