Expansion pushes Kentz pretax profits up 36% in six months

ENGINEERING AND construction group Kentz enjoyed a 36 per cent rise in pretax profits to $25.2 million (€19

ENGINEERING AND construction group Kentz enjoyed a 36 per cent rise in pretax profits to $25.2 million (€19.6 million) in the first six months of 2010, fuelled by its expanding range of services and global reach.

Kentz, which builds oil and gas plants and infrastructure in some of the most isolated places in the world, reported a 32 per cent rise in first-half revenues to $434.3 million. Moreover, the global group’s backlog of orders and contracts had strengthened to $1.6 billion by the end of June, from $1.1 billion a year earlier.

The Clonmel-headquartered group’s ability to operate in remote areas such as the northwest of Australia and far-east Russia, combined with its diverse services, had driven growth, chief executive Hugh O’Donnell said.

He described the results yesterday as a “solid performance” and said that the outlook remained positive for the onshore oil and gas sector across several regions.

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The group, which is listed on London’s Alternative Investment Market, scored several project successes during the first half of the year in locations such as Australia, Papua New Guinea, North America and Africa.

The group announced it had won a new $36 million contract with Qatar Petroleum at Halul Island in Qatar, due to be completed in August 2012.

During the first half, Kentz continued to develop its joint-venture project – Kentz Global Oil and Gas Process Systems – with GPS of Dubai, which had enabled it to expand its activities, Mr O’Donnell said.

He added that Kentz was always on the lookout for value-added “bolt- on” acquisitions, although at the moment the group was not near the completion stage of any deals.

Kentz employs more than 10,000 people across 26 countries, and this week is holding a recruitment drive in Ireland. A team from its Australian operation is here trying to fill more than 100 construction-related jobs.

Candidates should contact the Kentz head office in Clonmel.

“The Irish are very welcome in Australia,” Mr O’Donnell said.