UAE engineering firm Kent heads for record order book despite Iran war

Kent, the Dubai-based energy engineering company owned by Saudi Arabia's Nesma & Partners, expects to end the year with a record order backlog as Gulf producers press ahead with major projects despite months of disruption caused by the Iran war.

The company is on track to meet its revenue target of about $1.5 billion this year and deliver on earnings, chief executive John Gilley told The National in an interview in Abu Dhabi.

The war involving the US, Israel and Iran, which began in late February, has disrupted energy shipments through the Strait of Hormuz and damaged critical infrastructure across the Gulf. But it has also generated a wave of work for engineering contractors with a deep presence in the region, from repairing damaged plants to building export routes that avoid the strait. Rystad Energy estimates the cost of restoring energy infrastructure damaged in the conflict could reach $58 billion.

Kent is helping energy producers in Saudi Arabia, Qatar and the UAE assess damage to plants after the attacks. While some repairs are relatively minor, others require extensive planning before operations can resume.

"We're very proud of the fact that we'll probably hit budget this year at a time when supply chains have been massively disrupted," Mr Gilley said.

Kent's order backlog was nearly $3 billion by the end of 2025, much of it concentrated in Gulf countries, and was expected to reach a record by December.

Its contracts with Adnoc Gas are progressing, including a $1.1 billion deal to expand the Asab and Buhasa gas processing plants under Adnoc Gas's $5 billion Rich Gas Development project. Supply chain bottlenecks have slowed progress, but Kent still aims to deliver on schedule, Mr Gilley said.

Show caption: Iraq is becoming a "very, very large" market for Kent as int…

New urgency for bypass pipelines

Gulf producers are accelerating projects that allow them to export crude without passing through the Strait of Hormuz. Saudi Aramco has started work to expand its East-West pipeline to the Red Sea, while Adnoc is fast-tracking a new West-East pipeline to Fujairah on the Gulf of Oman.

Mr Gilley said he did not see a major change in strategy from oil companies, but the war has transformed how such projects are viewed.

"In the past, when these types of projects, which really don't add any production, are talked about, they're always on a slow burn," he said. "Now the risk rating and the benefit for the project have increased exponentially, so they're much more likely to go ahead."

Kent does not expect to significantly increase capital spending next year, relying instead on its 5,000 to 6,000 engineers worldwide, including teams across five offices in India.

Iraq emerges as major market

Iraq is becoming a "very, very large" market for Kent as international oil companies expand their involvement in the country's energy sector.

The company has a major framework agreement with Basrah Gas Company, works with BP at the Rumaila oilfield and with China's Sinopec, and has secured a new contract with BP at Kirkuk.

Mr Gilley expects ExxonMobil, and potentially Chevron, to return to Iraq, creating opportunities for contractors at major fields, including Majnoon.

LNG a key growth area

Mr Gilley expects liquefied natural gas to remain a major growth area over the next decade, and Kent is pursuing opportunities linked to Mozambique's LNG developments.

However, volatile prices complicate the long-term supply agreements needed to finance projects costing billions of dollars, he said, and contractors rarely share in the upside when commodity prices rise.

"When the prices of gas and oil reduce, our customers ask us to reduce our rates," he said. "But they never get us to increase our rates when they make such profits."

Kent is also expanding into data centre engineering, advising operators on grid optimisation and renewable electricity supplies. Mr Gilley said the business was "absolutely flying".

"The world is addicted to two things: energy and data," he added. "The problem with increased demand for data is the increased demand for power. As an offering, we can do both."

Kent has reduced its carbon intensity by 43 per cent, exceeding a 30 per cent reduction target set for 2027, and aims to achieve net zero by 2040.

That does not mean retreating from hydrocarbons, particularly in the Gulf, where production costs and emissions intensity are relatively low. "We'll continue to proudly produce fossil fuels," Mr Gilley said.