Kentz still on track for double-digit earnings growth next year

Engineering and construction group Kentz expects to generate 'in-line' earnings this year and said it is confident of achieving double-digit profit growth in 2013.

The company, which works across 29 countries, said that its operations have performed well in the period between July 1st and November 11th, with growth underpinned through new project awards together with natural growth on existing contracts.

Kentz's backlog at the end of the third quarter (September 30th) was flat at $2.53bn (July: $2.54bn, October 2011: $2.38bn).

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Chief Executive Christian Brown said: "We continue to perform well across our global operations and expect to deliver 2012 earnings in line with current market expectations. We are confident that our backlog and current prospects will continue to support double digit earnings growth in 2013."

The group said that operations in North and South America have produced solid results so far this year, with its Construction and Technical Support Services (TSS) divisions executing projects on the Kearl Oil Sands projects for Imperial Oil, the Aurora Mine Relocation (AMR) project for Syncrude, Barrick Mine in the Dominican Republic and on a number of other smaller projects.

Both units remain strong across Africa, Kentz added. Its Construction division recently won a further contract with FTSE 250 miner Kenmare Resources on the Moma Sands project in Mozambique.

During the period, the company also won a $50m shutdown services and operations support contract with Exxon Neftegas in Russia.

"Our balance sheet remains strong and continues to support the further development of the business," the firm said.