Kentz Corporation Limited, the holding company of the Kentz engineering company, has released its audited results which show that overall, the 2013 results are positive with Kentz having achieved its target of double digit earnings growth of 17.3%.

Engineering, procurement, construction (EPC)

The successful completion of Kentz’s first solar EPC project, the Scatec Solar Kalkbult project in South Africa is a 2013 highlight and Kentz continues to see further progress for the EPC business unit in southern Africa. Kentz says the strategic initiatives it has put in place to strengthen and broaden its EPC capabilities have shown considerable promise.

Over the last year, Kentz signed three long-term framework agreements with blue-chip international companies that allow for the provision of services as required and on an immediate basis, rather than submitting tenders for individual elements as they are required. In addition to these three agreements, Kentz was awarded further work with Transnet for work on elements of the New Multi-Product Pipeline (NMPP) Project.

Construction

The provision of construction services to energy and resource clients has been at the core of Kentz’s business over three decades, representing 43% of Group revenues in 2013. Revenue from the construction business fell slightly in 2013 to US$709.5 million from US$759.3 million in 2012.

Slower progress has been made on projects in Australia and Africa and Kentz expects to see improved progress in these regions in 2014. The company continues to maintain a good presence in East Africa, particularly in Mozambique, through its work with Vale an Kenmare Resources. In 2013 Vale awarded Kentz a contract to provide structural, mechanical, electrical and instrumentation services for the Nacala Corridor Project in northern Mozambique.

The longer-term focus remains on the LNG projects planned for Mozambique, where Kentz has a strong base and good relationships with government and local communities. This, coupled with the company’s track record in LNG in other parts of the world, positions the business well to compete for upcoming work.