15th Dec 2015 07:23
LONDON (Alliance News) - Oil services company Petrofac Ltd Tuesday said its engineering, construction, operations and maintenance division will deliver results for 2015 in line with expectations, but warned its integrated energy services division will book a "modest" loss.
The FTSE 250-listed company said its order intake from the construction, operations and maintenance division since the start of 2015 has totalled USD8.80 billion, with a backlog of USD18.50 billion at the end of November. At the end of 2014, Petrofac had a backlog of only USD15.60 billion, giving it better revenue visibility going forward.
"Against the backdrop of a difficult period for the industry, we remain well-positioned. Our ECOM backlog stands at record levels, giving us excellent revenue visibility for 2016 and beyond, and our pipeline of bidding opportunities remains robust, with ongoing investment by our clients in large strategic projects in our core markets," said Chief executive Ayman Asfari.
Petrofac said the engineering, construction, operations and maintenance division will deliver a net profit in line with expectations for the full financial year, but warned its integrated energy services division will deliver a "modest trading loss" for the full year.
Net debt is expected to remain broadly flat in the second half of the financial year compared to the first at around USD1.00 billion. However, that will still be up from the end of December 2014, when net debt stood at USD700,000.
Like its oil field services peers, Petrofac plans to focus on costs, with the company implementing a "group reorganisation" from the start of 2016 to "sustain our strong competitive position," the company said.
On Monday, Petrofac secured contracts worth around USD400.0 million covering work in the UK Continental Shelf with fellow London-listed companies Centrica PLC and EnQuest PLC.
Petrofac's financial year is due to end on December 31, and the company will report its results on February 24.
By Joshua Warner; [email protected]; @JoshAlliance
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