Petrofac has announced that it expects to deliver net profit growth of at least 15% from 2011 to 2012.
Group backlog is expected to be $11.6 billion at 31 December 2012, an increase from $10.8 billion from the same period last year. Net cash balances were US$0.2 billion at 30 November 2012 as opposed to $1.5 billion on 31 December 2011, due to the unwinding of cash advances on Onshore Engineering & Construction projects and the deployment of cash on IES projects, according to a statement released by the company.
“In our engineering, construction, operations & maintenance (ECOM) division, we continue to deliver very good operational performance,” said Ayman Asfari, group chief executive. The division has secured an order intake of $5.3 billion this year with project awards in Saudi Arabia, Iraq, Kuwait and the UK.
“We continue to experience high levels of bidding activity and we see a strong pipeline of bidding opportunities for 2013,” he added.
The company’ s onshore engineering and construction segment remained robust in Abu Dhabi, Turkmenistan and Algeria despite some slippage in the timing of certain contract tender processes this year and the delay in the award of some projects to next year.
Backlog increased of the second half of the year, with year-end backlog based on contracts signed to date expected to be approximately $5 billion, an increased from the $4.6 billion at the end of June 2012. Backlog for 2011 year end was $6.4 billion.
“Given our competitive positioning and a strong pipeline of bidding opportunities, particularly in the Middle East, North Africa and the Commonwealth of Independent States, we anticipate growth in our Onshore engineering & construction backlog during 2013.”
The company’s offshore projects and operations segment also performed well with an order intake totalling $2.1 billion. New wins during the year included onshore maintenance and offshore operations and maintenance projects in Iraq for BP and South Oil Company.
Petrofac’s engineering & consulting services division saw increased activity for its front-end engineering and design and conceptual studies. In December, the segment was awarded a three year contract in Algeria by JV Gas, a joint venture between Sonatrach, BP and Statoil, to provide consultancy, design and procurement services.
