Petrofac publishes first half results

Petrofac has released its results for the first half of 2014, reporting a successful year for new awards. The company’s ECOM division posted an order intake of US$ 7.2 billion in the first half, while the order backlog increased by 35% to a record level of US$ 20.3 billion. The division continues to perform in line with expectations, while Integrated Energy Services (IES) is making good progress on addressing project performance issues.

First half highlights

Revenue and net profit for 2014 is significantly weighted towards the second half of the year, reflecting the phasing of project delivery.

• Revenue stood at US$ 2.5 billion (2013: US$ 2.8 billion).
• EBITDA reached US $340 million (2013: US$ 405 million).
• Net profit was US$ 136 million (2013: US$ 243 million).
• Earnings per share (diluted) totalled 39.8 cents (2013: 70.72 cents).
• The company is on track to deliver net profit in the range of US$ 580 million to US$ 600 million for the full year 2014, in line with previous guidance.
• Interim dividend remained stable at 22 cents per share (2013: 22 cents).
• Net debt totalled US$ 1.3 billion at 30 June 2014 (December 2013: US$ 0.7 billion); subsequently reduced by US$ 0.4 billion following completion of the Petrofac FPSO Holding Limited transaction in August 2014.

Ayman Asfari, Petrofac’s Group Chief Executive commented on the results: “In ECOM, we have already had our most successful year for new awards, bid at margins consistent with our medium-term guidance, reflecting ongoing high levels of investment by our customers in our core geographic markets and our strong competitive position. Our pipeline of bidding opportunities remains attractive and we are confident of securing a number of further awards and contract extensions during the second half of the year.

“In IES, we are making good progress on addressing project performance issues and the delivery of key operational milestones. Looking further ahead, we have re-focused our IES business development plans and our innovative venture with First Reserve reinforces the role of IES as an enabler for the Petrofac group, allowing us to concentrate our resources on our core strengths and underlining our commitment to capital discipline.”

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/26082014/petrofac-publishes-first-half-results-740/