Proactiveinvestors USA & Canada KENTZ Proactiveinvestors USA & Canada KENTZ RSS feed en Tue, 16 Jul 2019 05:28:06 -0400 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Kentz agrees £1.2bn Canadian takeover ]]> Kentz (LON:KENZ) has agreed to a takeover from Canadian group SNC-Lavelin after rejecting two competing offers from Amec and M+W last year.

Shares in the oil services group surged by a third as news emerged, with the deal valuing each Kentz share at 935p and the oil services group overall at about £1.2bn.

The offers last year were pitched at around £700mln or 580p per share, but both were rejected as undervaluing the company.

SNC- Lavelin said it expects the acquisition to be earnings accretive in the first full financial year and deliver strong financial benefits, including estimated annual cost savings of C$50mln.

The combined headcount will be about 44,500, of which 18,500 employees will be focused in the oil & gas sector.

Kentz’s board is recommending the offer, which “recognised the future prospects, world-class client base, and our excellent people; the ultimate assets of our business,” added Christian Brown, Kentz’s chief executive.

Shares jumped 227p to 929p.

Mon, 23 Jun 2014 12:34:00 -0400
<![CDATA[News - Investec mulls oil services results season; likes mid caps ]]>

It is results season for the UK's oil service sector, notes broker Investec, which is expecting to see "relatively positive" statements.

But this is likely to be overshadowed by factors, including wider uncertainty in the oil price, unconventional reservoir activity in the US and the timing of large contracts, says analyst Keith Morris.

The big caps such as AMEC, Petrofac and Wood Group are unlikely to throw up many surprises, he says, adding they are likely to repeat the tone of previous trading updates.

"Mid caps offer the most attractive ratings with Kentz (LON:KENZ) and Hunting (LON:HTG) being our preferred engineering and drilling services picks respectively, with Cape (LON:CIU) as a special situation recovery play," he said.

The broker rates Kentz a 'buy' with a 600 pence a share price target, saying it stands out as the most undervalued.

Hunting, 'buy' with a target price of 950 pence, offers the most direct leverage to the US unconventional market, where there has been recent evidence suggesting recovery in activity, if not margins, by the end of 2012, he says.

Cape has a new chief executive likely to drive the business forward after revealing structural issues, says Morris, rating it a 'buy' with a price target of 300 pence.

Tue, 07 Aug 2012 12:36:00 -0400
<![CDATA[News - Kentz Corp rallies on bullish trading update ]]>

Shares in Kentz Corporation (LON:KENZ) rallied this morning after the engineering firm reported that demand for its services remained strong and it still expected to top full year expectations.

Today’s bullish update came only a month after Kentz said its full year performance would be slightly ahead of forecastsas it continued to grow revenues and order backlog over the first four months of the year.

Kentz reported today that intake of new orders and growth from existing clients reached US$700 million and it had an order backlog of US$2.5 billion at the end of May.

Reimbursable contracts make up 66 percent of the backlog, while unit rate reimbursable contracts and lump sum work account for 12 percent and 22 percent respectively.

This backlog, said Kentz, gives it visibility of work up until 2015 and “positions us strongly for continued growth in the business”.

The group also noted that many of its clients now take a long term view when considering future developments due to the recent volatility in the price of oil.

“Kentz works hard to maintain a thorough understanding of our clients' development challenges particularly in the current economic climate,” said chief executive of Kentz Christian Brown.

“Despite the current volatility in world markets, we continue to see strong demand for Kentz's services.

“Our broad base of clients, diversity of operations and significant global footprint gives us great confidence for the future.”

Investors cheered the update, sending Kentz up 6.5 percent to 347 pence by 10:10am, giving the group a market cap of £404 million.

Tue, 19 Jun 2012 10:24:00 -0400
<![CDATA[News - Kentz raises expectations as contract numbers continue to grow ]]>  

Engineering giant Kentz (LON:KENZ) said its full year performance will be slightly ahead of expectations as it continued to grow revenue and backlog in the four months to 30 April.

Current prospects consist of projects with values up to US$100 million while the overall pipeline for prospects stands at US$ 10.8 billion at the end of April 2012.

It added it expects to continue achieving an average natural growth on contracts of 25 per cent in 2012.

Backlog grew to US$2.46 billion in the period from US$2.4 billion in the four months to 31 December 2011.

Chief executive Christian Brown said: "Kentz is pleased to report that the group has experienced good growth in the first four months of the year and anticipates that the full year performance will be marginally ahead of expectations.” 

The company said it expects continued strong demand in Africa, which was the largest region in revenue terms for construction in 2011. 

“We have experienced considerable growth in the metals and mining sector in Africa in 2011 through our work with Sherritt on the Ambatovy project in Madagascar and with Vale on the Moatize project in Mozambique.”

It added its enginering, procurement and construction (EPC) arm is currently bidding on a number of liquefied natural gas (LNG) projects in the Western Australian region.

In its EPC business it said Iraq is the largest opportunity in the strategic pipeline but it remains ‘cautious’ on timing due to political and security factors.

Brown added: “We continue to evaluate possible acquisition targets but will retain a prudent approach to evaluating any such strategic prospects to ensure any investment is value-adding for our shareholders.”

The share price was up 1.33 per cent to 3.82 pence at 10.57 on the back of the news.


Fri, 18 May 2012 10:57:00 -0400
<![CDATA[News - Engineer Kentz reports strong year in 2011 ]]> Engineering giant Kentz Corp Ltd (LON:KENZ) expects 2011 revenues and profits to be marginally ahead of consensus, it said in a pre-close statement today.

The firm reported another strong year with growth in revenue, profit and backlog.

Separately, it announced that it has appointed Christian Brown as its new chief executive with effect from February 1 this year - succeeding Hugh O'Donnell who has been in the role for 12 years.

Kentz posted a record backlog of US$2.40 billion at the end of the year, an increase of 50 per cent from December 2010, underpinned by further new awards and natural growth on existing contracts.

The company now has a pipeline of prospects which stands at over US$10 billion, it told investors.

Papua New Guinea shows opportunity for growth, the firm said, as shown by further new contract wins.

Kentz had around US$223 million in cash at the end of the year, which supports continued growth.

In today' statement, O'Donnell said: "2011 was another strong year for Kentz with growth in revenue, profit and backlog.

"We anticipate continued development in both our core and emerging markets such as Russia, Australia and Canada. Overall, the outlook is very positive, underpinned by the solid project pipeline of our core clients, which gives us confidence for 2012 and beyond."

Broker Brewin Dolphin rates the stock a 'buy' with a target price of 600 pence.

"Kentz has an impressive track record of meeting and exceeding market expectations, and delivering consistent growth. With backlog, pipeline and balance sheet all strong, we see this continuing," it said in a note.

It added that the company was trading broadly in line with its peers but saw scope for earnings upgrades throughout the year.

The broker added it believes Kentz is a quality business which would be a solid buy for the long term.

The firm's 2011 results are due to be published on March 26 this year.

Fri, 20 Jan 2012 08:40:00 -0500
<![CDATA[News - Kentz Corp wins US$30 mln contract for Madagascar nickel project ]]> Kentz Corp Ltd (LON:KENZ), the holding company of the Kentz Engineering and Construction Group, said  it has been awarded a US$30 million contract by SNC-Lavalin on the Ambatovy project in Madagascar.
Ambatovy is a long-life lateritic nickel project with an annual design capacity of 60,000 tonnes.
Kentz's scope of work includes the electrical and instrumentation installation for the entire metals refinery area, and the piping fabrication and mechanical installation for part of the refinery area.
The Ambatovy project is a joint-venture partnership among the project operator, Sherritt International Corporation, which owns 40 percent, Sumitomo Corp and Korea Resources Corp, which each have a 27.5 percent interest, and the project's engineering contractor, SNC-Lavalin Group Inc., with an interest of 5 percent.
The Kentz team have mobilised on site. The contract is due to be completed by the end of 2010.

Thu, 05 Aug 2010 08:38:00 -0400
<![CDATA[News - Kentz wins US$69 million contract for Vale’s Moatize coal project in Mozambique ]]> Kentz Corporation Limited (AIM: KENZ) has won a US$69 million contract for structural, mechanical, electrical, instrumentation and piping work for the coal processing plant at the Moatize coal project in Mozambique.

The project is being developed by Brazil headquartered miner Vale (NYSE: VALE), being its first greenfield project in Africa and one of the largest coal mining projects in the world. The plant, which is located in the Tete province of Mozambique, will ultimately have the capacity to handle 26 million metric tonnes of coal per annum.

The company has been providing specialist engineering and construction solutions to its clients in Sub-Saharan Africa for over 30 years, having about 3,000 personnel in the region.

“This is a fantastic award for Kentz and reaffirms our dominant position in the mining sector in sub-Saharan Africa. This is the first of many coal projects that are planned for development in the region, which has the largest carboniferous reserves in the world. Kentz is ideally positioned to secure ongoing work over the coming years,” said chief executive Hugh O’Donnell.

Shares in the company rose more than 4% on the news.

Fri, 15 Jan 2010 10:59:00 -0500
<![CDATA[News - Kentz wins A$150 million telecommunications contract for Chevron’s Gorgon Project in Australia ]]> Engineering and construction group Kentz Corporation (LSE: KNZ) announced that it had secured a second contract win related to the massive Gorgon Project in Western Australia.

The Gorgon Project is a 40 trillion cubic feet (tcf) gas field that is being developed by Chevron, ExxonMobil and Shell.  The field is located between 130 kilometres and 200 kilometres off the north-west coast of Western Australia, and is the largest gas resource in the country.

Kentz’s contract includes the design, supply, installation, testing and commissioning of the telecommunications scope on Barrow Island.

“The remoteness of the project site calls for the use of state of-the-art telecommunications technology, including converged IP networks for multiple data streams, satellite data communications, navigational aids including radar and vessel tracking, meteorological and oceanographic systems, site wide WAN/LAN with network management, central fire and security monitoring, and data transmission on both fiber optic and microwave,” Kentz stated.

Fri, 21 Aug 2009 11:17:00 -0400
<![CDATA[News - Kentz Corp wins US$30 mln control system replacement order in Abu Dhabi ]]> Kentz Corp Ltd (AIM: KENZ), the holding company of the Kentz engineering and construction group, said its UTS Kent LLC unit won a contract worth in excess of US$30 million by Abu Dhabi Gas Liquefaction Company Ltd (ADGAS), an Abu Dhabi National Oil Company Group company.

The project consists of the replacement of the existing control system and associated electrical and  instrumentation devices on Das Island.

The scope of Kentz's work includes the design and detailed engineering, procurement, installation, construction, pre-commissioning, commissioning and transfer of the existing field instrumentation to a new control system for the ADGAS LNG, LPG, Sulphur storage and Jetty Loading facilities which will then be integrated into the existing systems of the three LNG/LPG processing facilities.

The design team has begun mobilisation and construction completion is scheduled for 2012.

Thu, 23 Jul 2009 09:29:00 -0400
<![CDATA[News - Kentz: Cash Rich Middle East engineer ]]> … At current prices Kentz’s market capitalisation is £125 million and at the end of December 2008 the group reported net cash of approximately £105 million.

As indicated last week the short-lived move under 4000 once again provided an excellent buying opportunity.

After a fortnight of heavy losses, the banking sector has had a strong week. The catalyst came from a trading update from Barclays on Monday, which reassured investors on their capital position and profitability.

However, the mining sector has come under pressure this week. Debt-laden Xstrata is set to launch a $5.9 billion capital raising, as it looks to reduce its debt burden in the wake of the global commodities slump and investors are concerned that other mining companies will inevitably follow.

Technical analysis of the above chart suggests that the recent dip below 4000 could have marked a near term base for the FTSE 100. Historical support at this level combined with an up trend of higher lows since October 2008 signifies the importance of this level.

Furthermore, the oscillators have moved out of oversold territory, with both the relative strength index (RSI) and the stochastic trending higher, which suggests that the recent momentum may continue.

In summary, in light of the index finding support at 4000, I believe the medium term outlook has turned significantly more bullish. Resistance is seen coming from the 50 day moving average at around 4290, but a break of this level could take us up to major resistance at 4600.

Oil services companies have outperformed the wider market over the last month, with the sector average gaining in excess of 10% during this period. A stock I have been following closely within this sector is Kentz Corporation (epic: KENZ), which provides global engineering solutions to the oil, gas and other resource sectors.

Kentz has been listed on stock market since February 2008 and they released an encouraging trading statement to the market on the 28th January 2009, which came in ahead of analyst’s expectations.

During 2008 the company’s total order intake to backlog was £1048.9 million, compared to $596.4 million last year. In addition, it has received several letters of intent, which have not yet converted into backlog totalling $224 million.

The group’s success has also come from its ability to achieve growth from its existing contracts, with over $200 million of new orders generated from current clients in 2008. In light of this increase in business, margins are still expected to be in line with the previous two years, which is promising.

At current prices Kentz’s market capitalisation is £125 million and at the end of December 2008 the group reported net cash of approximately £105 million. This simplistically equates to 90p a share of cash and if you strip it out of the valuation, the company is trading on a forward PE of around 1.2x.

The current volatile global economic conditions have had some impact on its industry, but to date its clients have experienced very few cancellations. The majority of their business is enacted in the Middle East, which makes them a comparatively more defensive play, as spending plans in this region are not so dependent on high oil prices.

The outlook remains encouraging, with a pipeline for new prospects in excess of $2 billion. The company is trading close to cash and with their current backlog it makes them an extremely attractive oil services play relative to their peers.

As can be seen from the above chart of Kentz the shares floated at 119.5p back in February 2008 and got up to a high of 190p in early June, before falling sharply lower with the market.

For the last four months Kentz appears to have found support around the 100p level. However, the recent trading statement caused the shares to break-out above the recent trading range.

The decisive move through the 50 day moving average and to fresh four month highs could trigger the shares to re-rate and trend higher. The RSI has broken through the 50 level, which suggests that momentum is building and the rising stochastic supports this.

If we combine our earlier analysis of the FSTE, with the strong fundamental and technical analysis discussed about Kentz it suggests the shares could trade higher.

At the time of writing the share price is 107.5p and my short term opinion is positive. Near term targets are seen at 113.75p, 118.25p and 123.25p, with a stop loss marginally below the 50 day moving average and psychological 100p level at 98.5p.

Fri, 30 Jan 2009 12:21:00 -0500
<![CDATA[News - Engineering firm Kentz joins AIM ]]>
Hugh O'Donnell, CEO of Kentz said:

"We believe that Kentz's proven track record with blue-chip clients and potential growth opportunities, particularly in the oil, gas and mining sectors, has generated strong support from a broad range of investors. The management team has a clear strategy to capitalise on growth opportunities and in doing so, aims to create value for our shareholders. We believe that being a publicly traded company will allow us to consolidate the hard work and investment in the business over the recent years and enable us to further our position in the engineering and construction marketplace."

Wed, 06 Feb 2008 10:59:00 -0500