24th Feb 2016 07:21
LONDON (Alliance News) - Petrofac Ltd on Wednesday said 2015 earnings were reduced by losses booked against the Laggan-Tormore project in the UK North Sea.
The oilfield services company confirmed expectations that the loss booked against the Laggan-Tormore project in the UK North Sea hampered results, but stuck to its commitment to maintain its dividend.
"Our results for 2015 were adversely affected by the Laggan-Tormore project on Shetland. However, we faced up to the exceptional challenges we encountered and honoured our commitment to our client. With the plant now successfully operational, these issues are finally behind us," said Chief Executive Ayman Asfari.
Petrofac managed to squeeze out a net profit in 2015. However this dropped 98% to only USD9.0 million from USD581.0 million in 2014. Excluding the loss booked against Laggan-Tormore, net profit met expectations at USD440.0 million.
Earnings before interest, tax, depreciation and amortisation was down by two-thirds in 2015, coming at USD312.0 million, compared to USD935.0 million the year earlier. Ebitda before the loss against Laggan-Tormore amounted to USD792.0 million.
Revenue for the year was up 10% to USD6.80 billion from USD6.20 billion.
Importantly, Petrofac kept its dividend flat in 2015 at 65.80 cents, after it committed to that payout in late 2015.
Petrofac said it made annual savings of USD80.0 million in 2015, and it aims to make a further USD90.0 million of savings by the end of 2016.
By Joshua Warner; [email protected]; @JoshAlliance
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