Shares in Irish oil and gas engineering company Kentz, whose customers include Exxon Mobil and Shell, rose to a record in London trading after winning a $2.3 billion contract in Australia.
Kentz shares rose 6.1 per cent to 492.5 pence on London’s alternative investment market (Aim) earlier today, the highest since the shares were first sold in February 2008. The stock is up 53 per cent this year.
The company said in a statement that it was awarded the contract for a joint venture with energy group CB&I for the Chevron Corporation-led Gorgon liquefied natural gas project on Barrow Island in Western Australia.
Kentz, which had an order backlog of about $1.6 billion at the end of April, said last month it was bidding on further contracts at the Gorgon and Pluto gas projects in Australia.
Energy companies including Chevron and Shell are investing in Australian gas ventures to meet a projected increase in Asian demand for cleaner-burning alternatives to coal.
"This is an excellent project win for Kentz, lifting the backlog by almost 50 percent and providing good earnings visibility through 2013-2014," Keith Morris, a London-based analyst said.
"The contract commences immediately and is due to run until 2015 with peak activity in 2013 and 2014 and therefore the biggest impact on joint venture profit contribution," he said.
Additional reporting: Bloomberg