Petrofac today announced results for the first six months ended 30 June 2011.
FINANCIAL HIGHLIGHTS
Ayman Asfari, Petrofac’s group chief executive commented on the interim results:
“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 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.”
OPERATIONAL HIGHLIGHTS
Engineering & Construction
Offshore Engineering & Operations
Engineering, Training Services and Production Solutions
Energy Developments
OUTLOOK
Petrofac is confident that it can continue the good progress that they have achieved in Engineering & Construction in the year to date. With high levels of backlog, Petrofac has outstanding revenue visibility which should ensure that they report strong growth in our full year revenues and expects full year net margins to be in line with its medium-term guidance at around 11%.
While Offshore Engineering & Operations activity levels and revenues are expected to continue at record levels, net profit is expected to be lower in the second half of the year, as the first half benefited from significant progress on the SEPAT development and a provision release following completion of a long-term maintenance services contract. Net margins for the full year are expected to be substantially higher than in the prior year.
The second half performance of the Engineering, Training Services and Production Solutions reporting segment is expected to be broadly in line with the first half of the year, albeit with a greater contribution from Production Solutions, as Petrofac expects a general improvement in our consultancy and technology businesses and a positive contribution from the Ticleni Production Enhancement Contract.
In Energy Developments, Petrofac’s operational assets are expected to continue to perform broadly in line with the first half, with the exception of the Ohanet RSC, which ends, as expected, in October. On the Berantai field development, Petrofac expects the FPSO Berantai to mobilise to the field in early 2012, with first gas from the field expected shortly thereafter.
With a strong financial position, a differentiated and competitive offering and a proven track record in project execution, Petrofac is confident that it will continue to deliver superior value for our customers and sector-leading returns for their shareholders.
[mappress] Source: Petrofac, August 22, 2011;