20th Nov 2019 09:16
(Alliance News) - Oil and gas field services firm Petrofac Ltd on Wednesday announced a trio of new contract wins as well as an acquisition.
Jersey-based Petrofac has won a first "small-scale" engineering, procurement & construction, or EPC, contract in Malaysia. The firm will work on a boiler at one of the country's largest fertiliser plants, located in the state of Sarawak.
Elsewhere, Petrofac has signed a three-year framework with a North Sea energy operator, while it has also signed several contract extensions on brownfield sites in the same region.
Chief Operating Officer John Pearson said: "Continued diversification into new markets, such as brownfield projects, and new geographies, such as Malaysia, are key tenets of our growth strategy.
"We're also once again delighted that clients in the North Sea have exercised the option to extend our support for important operations and maintenance & engineering services contracts."
On the M&A front, Petrofac has bought W&W Energy Services for USD22 million in cash, a deal Petrofac said will give it an "entry-level" position in the US onshore operations & maintenance sphere.
W&W works in the Permian Basin, the world's largest producing basin.
Pearson added: "This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market.
"As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident the combination of W&W's footprint and strong local brand with Petrofac's engineering and modifications capability and global track record can unlock growth."
Shares were 0.6% lower on Wednesday morning at a price of 393.22 pence each.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Petrofac