Petrofac, the London-listed international provider of facilities solutions to the oil & gas production and processing industry, saw revenues rise 25% and profit rise 6.6% in the first half of this year on the back of $1.6 billion in new engineering orders that saw the firm’s backlog expand to $11.4 billion at 30 June 2011.
Revenue for the first half of the year totalled $2.711 billion while net profit $increased to $246.3 million.
The company expects full year profit margins to come into line with guidance at 11%.
While the company could not make up for the $125 million profit boost in the second half of 2010 resulting from the disposal of its interest in UK oil & gas business EnQuest, booming revenues and a burgeoning backlog keep the company abreast of high investor expectations.
In regional projects, the company reports “good progress” on it’s mammoth multi-billion dollar South Yoloten gas EPC project for Turkmengas. The company’s offshore engineering and operations arm also scooped a major oilfield service contract to maintain BP’s assets at the supergiant Rumaila oilfield in Iraq. The company also completed the Jihar gas plant in Syria and the In Salah Gas compression facilities and power generation in Algeria.
Following on from the creation of the Integrated Energy Services division announced in June, with effect from 1 January 2012, Marwan Chedid, currently Managing Director of Engineering & Construction Ventures, will become Chief Executive of the Engineering, Construction, Operations & Maintenance (ECOM) division, and will report to Ayman Asfari, Group Chief Executive.
Commenting on the results, Asfari said:
“We have had a successful year to date, with good operational performance across our portfolio of projects and encouraging progress against our recently announced Integrated Energy Services strategy. We are well on course to deliver like-for-like(6)net profit growth in 2011 of at least 15% and in-line with current market expectations.”
“With a strong financial position, a differentiated and competitive offering and a proven track record in project execution, we remain confident of achieving our medium-term growth target of more than doubling our recurring 2010 earnings by 2015.”
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