Half-year results from Kentz have revealed why interest in the engineering firm is soaring; it has orders worth £1.8billion on its books.
Amec – which employs about 4,000 people in Aberdeen and has a global workforce of more than 29,000 in 40 countries – had a £690million approach rejected by Kentz earlier this month.
On Sunday, shareholders said they would be open to a takeover at a price of £6.50 a share; which would value the company – also being courted by German firm M+W Group – at about £775million.
Yesterday, interim results for the for six months of the year showed why they are so bullish.
Profits are up 8% to £35.7million thanks to a strong performance in Canada, while its order backlog has risen by 12% to £1.8billion.
Chief executive Christian Brown said the company would continue to grow during the remainder of 2013 after the first six months had been “one of the busiest periods of bidding activity ever undertaken in Kentz”.
He added: “We continue to be excited about the increasing level of opportunities that exist for our diverse business throughout the world. Our blue-chip clients continue to invest and demand the services that Kentz provides in engineering, constructing and maintaining some of the world’s largest assets in the energy and resource sector.”
Kentz employs 14,500 staff and spans oil and gas, chemicals, mining and metals.
It traces its roots back to 1919 as an electrical contractor in Tipperary, Ireland, and works on small to medium projects from bases worldwide.
The half-year report said oil and gas was a growing market for the firm.
It added: “Oil and gas clients continue to invest for the future and Kentz continues to work closely with our clients in many parts of the world to determine the most appropriate project solutions that can be provided.”
Kentz said Amec’s previous highly conditional and unsolicited approach was based at 565-580p a share.
Yesterday’s report said: “The board has given careful consideration to these proposals, in conjunction with its advisers and decided to reject these offers as they deemed that these approaches undervalued the company.”
Amec and M+W now have until September 16 to make a firm offer for Kentz or walk away.