News Column

Petrofac profit plunge but order record may offer rebound ahead

August 27, 2014

THOMAS FITZGERALD



NET PROFIT at oil services provider Petrofac fell by a huge 44 per cent during the first half of 2014, though the company said it expected a much stronger second half would keep it on course to meet full-year profit targets, as it also revealed record order levels.


During the first half of the year to 30 June, net profit fell to $136m (82m), down over 44 per cent from $243m in the first half of 2013, with revenue also down to $2.5bn, over a 10 per cent decline on $2.8bn last year.


However, Petrofac did announce it had new orders worth $7.2bn in the first half of 2014, contributing to a total order backlog worth a record $20.3bn for the company going into the second half.


As a result, Petrofac said it still expected net profits for the 2014 full year to be in line with expectat-ions of between $580m and $600m.


Ayman Asfari, Petrofac chief executive, said: "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."


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Source: City A.M. (UK)


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