26th Feb 2014 08:07
LONDON (Alliance News) - Petrofac Ltd Wednesday announced modest net profit and revenue growth for 2013 that was in line with, to slightly better than, market expectations.
The oil and gas services company also reiterated guidance towards a flat to slight increase in net profit during 2014 and said it is confident of return to strong earnings in 2015, following recent big contract wins.
Petrofac said its net profit increased by 2.8% to USD650 million for 2013 from USD632 in 2012, above analyst consensus figures. The profit growth was driven by a slight increase in revenue to USD6.3 billion from USD6.2 billion.
The company said the revenue increase was due to good growth in Offshore Projects & Operations, Engineering & Consulting Services, and Integrated Energy Services, due to high levels of activity.
These growth areas were offset by lower revenues in Onshore Engineering & Construction, reflecting lower activity levels, including the rephasing of the In Salah southern fields development in Algeria and the Upper Zakum field development in Abu Dhabi.
In November, the oil and gas services provider said it is on track to deliver modest net profit growth in 2013 after good operational performance across its portfolio of projects.
Petrofac lifted its full-year dividend by 3% to 65.80 cents per share with a slightly increased final dividend of 43.80 cents from 43.00 cents the previous year.
The company also was expected to end 2013 with its highest ever year-end order backlog, a key indicator, and on Wednesday it confirmed this with a 27% increase to USD15.0 billion at December 31, compared with USD11.8 billion at the same point in 2012.
Petrofac said its backlog figures reflect a strong intake of new orders in Onshore Engineering & Construction and growth in Integrated Energy Services' backlog due to the signing of an agreement to develop the OML119 licence in Nigeria and improve certain existing projects.
The company recently announced major deals to start 2014, including a USD3.7 billion joint venture services contract with Korean based Samsung Engineering Co Ltd and CB&I Nederland BV in Kuwait, and a services award worth USD1.2 billion with BP PLC at the major Khazzan gas project in Oman.
In November, Petrofac had also said it expects net income in 2014 will be either flat or grow modestly year-on-year. It also said it expects further growth in 2015, but this will depend on the timing of potential engineering, construction, operations and maintenance contract awards during 2014.
The company confirmed this outlook on Wednesday, stating that its opening backlog position in 2014 gives the company good revenue visibility in the coming years, and it expects to return to strong growth in 2015.
At the open Wednesday, Petrofac shares were up 0.8% at 1,378.35 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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