Kentz Share Discussion Threads

[felix99] 23/1/2014 17:36

I just looked it up APAD

PMC - Project mgt contract .

i.e the customer pays for all the gear and you manage the delivery of it all for a fee. So any unknown cost overruns or unknown costs are the responsibility of the customer ( assuming its not down to your bad mgt ) . Like an architect managing a build for a client.

Risk on the customer as long as you manage it properly but customer presumably gets a much cheaper price as it is assuming the build risk.


EPC - Engineering procurement and construction

Basically the contractor agrees a fixed price with the customer to deliver the whole shooting match and any overruns or cost issues are down to the contractor and customer has little risk .

Contractor gets tonnes of risk but presumably has a whacking safety margin in the contract to make a huge profit if it goes to plan with no hitches. High risk high reward but of course as we see with many other engineering co's they can catch big colds on nightmare projects as well.

From customer point of view there is less risk but presumably the margin on the contract means its massively more expensive to do as they are being lazy and risk averse.


I suspect with a lot of engineering projects where its fairly standard tried and tested technology being installed they are now going the KENZ PMC route as they don't want to pay way over the odds to lay off the risk of problems which really should be known about and unlikely to happen.

That is my view of things and of course has benefitted KENZ both for a shift in this direction and also has helped them avoid some banana skins that some of the engineers have caught - I forget the name of the one that was building rig vessels in the middle east that ran into big cost overruns.

[apad] 23/1/2014 16:09

bram
I'm acronymically challenged.
I think I know what you been, but what do EPC and PMC stand for.
Prettyplease,
apad

[steeplejack] 23/1/2014 15:23

22-Jan-14 Investec Securities Buy 677.00p 600.00p 775.00p Reiteration17-Jan-14 UBS Buy 685.50p 730.00p 730.00p Reiteration16-Jan-14 HSBC Overweight 680.50p 615.00p 775.00p Reiteration18-Dec-13 Canaccord Genuity Buy 620.50p 600.00p 700.00p Reiteration11-Dec-13 Liberum Capital Hold 629.00p 650.00p 712.00p DownGradeBought more on this markdown.The markets look fragile both sides of the water but with the Vodaphone money set to flood in come the Spring,we might take out some old highs before the Summer lull.

[brambuz80] 23/1/2014 15:14

Jimmy I think KENZ is benefitting from the fact that many contractors like KBR, Fluor, Petrofac, Foster Wheeler, AMEC and the like progressively moved away from EPC contracts in favour of PMC contracts where they only manage the job at a lower risk compared to EPC companies like KENZ...big money in engineerinf are in EPC not in PMC and KENZ is filling that voidAll in my opinion and DYOR

[brambuz80] 23/1/2014 15:07

690p has proven to be a hard level to break through...2 attempts in the last few days and price bouncing back...when we get through it i think 700p will easily be brokenDYOR

[jimmy mcnulty] 23/1/2014 09:50

malcysblog.co.uk has some glowing coverage of Kentz today:


Kentz Corp
A trading statement from Kentz this morning as the company updates on 2013 trading although to be fair, with the Valerus bid coming at the end of the year and completing just into the new year we already know pretty much everything that is going on. Eagle eyed readers will know that I like to use charts but I'm afraid that at the moment I am unable to transpose them onto the blog, its driving me nuts! The reason I say this is because you should find a Kentz chart and see just how the stock has really taken off after a long-ish period in the doldrums prior to AmecGate. Today the company has announced that 2013 earnings will be, as expected, double digit growth and that the backlog without Valerus was $3.1bn at year end, $3.5bn together. Order intake last year was an increase of 29% to $2.2bn and the pipeline is $15.6bn, up 18% giving an impressive 74% of 2014 revenues already under contract.

With a market cap of exactly £800m this morning and having delivered exceptional numbers in terms of orders and conversion to revenues, Kentz will continue to be my favourite stock in the sector. Having followed the company since it came to the market it is still pretty cheap for a company that delivers the goods day in day out and with the acquisition of Valerus giving chances to expand further geographically I see further progress. I don't know how many times I have to say this (and I have even taken Kentz out on the road where the management rarely fails to impress) to prove to investors of all sizes that this company is in a growth sector with a huge order book with more to come, yet trades on a sub sector rating even after a massive rise in the share price this year. Nuff said...

[a0148009] 23/1/2014 09:49

Thanks, guessed they were just covering their backsides.

[rivaldo] 23/1/2014 09:40

Investec's increase to 775p yesterday was well-timed :o))

A01, ignore it - it's pure legal guff insisted upon by the lawyers and advisers who comb every word of RNS's (as they should) and insist on covering themselves.

[a0148009] 23/1/2014 09:18

This is an unusual statement to make seems overcautious with the size of the back log, why say anything on 2014 at this stage.

"1. This should not be interpreted to mean that the future earnings per share of the combined Kentz and Valerus entity will necessarily match or exceed the historical published earnings per share of Kentz"

AO

[rivaldo] 23/1/2014 07:24

Yep, a great update:

- most encouragingly, 74% of forecast 2014 revenues are already under contract
- order book and prospect pipeline up since last update
- gross cash up nicely to $245m since the interims
- trading in line with expectations
- very bullish language re bidding activity etc

Excellent stuff.

[steeplejack] 23/1/2014 07:08

Terrific update.A class act.AMEC should have bid up but I'm glad they didn't.Through 7 quid today?

[bones] 22/1/2014 22:42

Bring it on, the US investors only take companies seriously once they have "BN" after their market cap number. Hopefully the update continues the positive themes tomorrow.

[apad] 22/1/2014 21:16

Pushing at the door of £1billion mkt cap at that price. They'd better deliver on the Texas Hold'em :-)
apad

[rivaldo] 22/1/2014 13:40

Nice - Investec have today increased their target price to 775p (from 600p), reiterating Buy:

[dominikzay] 22/1/2014 08:30

Market makers do what they are best at.

[dr_smith] 20/1/2014 15:54

Thank-you Sheyac, T/U it doesn't show on digital look calendat for the week, so I may have been taken by surprise.

[sheyac] 20/1/2014 15:10

Chance to top up on the cheap ahead of Thursday!

[steeplejack] 20/1/2014 14:49

Can't go up in a straight line.Bit of consolidation and then onwards.

[rivaldo] 20/1/2014 14:14

Thx Lady Luck - looking forward to this Thursday then.

Since KENZ said this only a month ago one would think any update will be rather decent:

"As announced on 18 November 2013 the Group saw strong order intake of US$1.8 billion in the first ten months of the year driven by increased bidding activity in the first half of 2013, with backlog of US$3.0 billion at the end of October 2013, of which US$1.225 billion is on a fixed cost basis and US$1.775 billion is on a cost plus basis. Since 18 November 2013, the Group has continued to trade in line with management's expectations and, as previously stated, Kentz anticipates results to be weighted towards the second half of the year. The Group has in excess of 60 per cent. of orders for 2014 under contract as at the date of this announcement, providing a great deal of confidence for further growing the business in 2014."

[alter ego] 20/1/2014 14:12

look at the chart in the header since last July. Does todays fall look special?

[dahhad] 20/1/2014 13:56

Any ideas for today's fall?

[lucky_lady] 20/1/2014 12:13

According to their website its Thursday 23rd January.

[lollipop4] 20/1/2014 11:59

Does anyone have a date for a pre-close trading update here? Was 18th last year, and 20th year before.