Kentz looking at possible acquisition in US

IRISH-MALAYSIAN engineering group Kentz is running the rule over a possible acquisition in the US.

The Alternative Investment Market (Aim)-listed company yesterday reported that profits before tax for the first six months of the year were up 52.2 per cent at $16.8 million (€11.8 million) from $11.1 million in the first half of 2007.

Chief executive Hugh O'Donnell told The Irish Timesyesterday that Kentz was hoping to buy a US oil and gas process engineering company.

He said the Irish group was carrying out due diligence of the company, was examining its operations and finance to verify its credentials, and hoped to be in a position to make an offer over the coming weeks.

He added that Kentz was hoping to do a deal with the US company before the end of the year.

Mr O'Donnell would not name the business as he said the talks were the subject of a confidentiality agreement.

In his statement, chairman Tan Sri Mohd Razali Abdul Rahman said the group was watching developments in the US carefully in light of its efforts to cut energy imports.

"With its vast coal reserves, untapped offshore oil and gas reserves, and nuclear technology, the US could, in the not too distant future, become a significant market for Kentz services."

Kentz provides engineering and instrumentation services mainly to the oil, gas and mining industries. Its clients include most of the world's major oil companies.

It said yesterday it had contracts for future work worth $2 billion, $500 million more than at December 31st last year.

Revenues in the first six months of this year were up 34.4 per cent at $328.6 million from $244.5 million during the same period in 2007.