Orders Grow $700 Million at Kentz Corporation
LONDON -- The shares of Kentz rallied 4% to 413 pence during early London trade this morning after the resource-focused engineer revealed first-quarter order intakes of $700 million.
Kentz, which generates more than half of its revenue from Africa and the Middle East, announced its prospect pipeline had grown 4% to $13.7 billion.
The company confirmed it had secured 80% of its targeted revenues for 2013 and reported a 9% expansion in its order backlog to $2.8 billion.
Looking ahead, Kentz maintained expectations of "double-digit earnings growth" for 2013, and said it was experiencing "increased bidding activity" with new and existing clients.
Christian Brown, chief executive at Kentz, said:
The Group performed very strongly in the first four months of the year. We anticipate that 2013 will be another successful year for Kentz in which we expect further growth and geographical diversity in our earnings and backlog.
The award of several new contracts already in 2013 and since the announcement of our full year results, gives us confidence that the Group will maintain this momentum and continue to grow our order book. With the implementation of our strategic initiatives, we believe that Kentz will continue to deliver strong growth for its shareholders through 2013 and beyond.
With a market cap of £480 million, Kentz shares trade at nine times expected earnings, and offer a prospective dividend yield of 2.5%.
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