17th Dec 2019 09:06
(Alliance News) - Petrofac Ltd on Tuesday reported a mixed performance so far in 2019 but said it is set for recovery and growth in the year ahead.
The stock was 4.5% lower in morning trade in London at 383.00 pence a share.
The oilfield services provider said it is trading in line with guidance so far in 2019, with new order intake of USD3.0 billion in the year-to-date.
By division, Petrofac said it has made a "steady" progress delivering its portfolio of engineering & construction projects, with revenue and net margin in line with forecasts. The company reported new order intake of USD2.0 billion in the year to date in its Engineering & Construction unit compare to USD4.3 billion a year ago.
Turning to Engineering & Production Services division, Petrofac said the unit is performing in line with expectations, with growth in projects more than offsetting lower activity from operations.
In total, USD1.0 billion of awards and contract extensions have been secured in the UK North Sea, Oman, United Arab Emirates, Malaysia and Azerbaijan, up from USD700 million a year ago.
Meanwhile, in the Integrated Energy Services unit, the Saint Helier, Jersey-headquartered company expects net production to be 4.2 million barrels of oil equivalent in 2019, lower than 6.2 million barrels of oil equivalent a year prior, reflecting divestments in the second half of 2018.
More positively, Petrofac said the average realised oil price for 2019 is expected to be USD66 per barrel of oil equivalent, higher than USD59 a barrel in 2018, reflecting higher commodity prices and production mix.
"We remain on course to report good results for 2019 in line with prior guidance, which reflect solid operational performance across the business and continued progress delivering our strategy," said Chief Executive Ayman Asfari.
"Looking forward, the fundamentals of our business remain robust, with an improving market outlook, a strong competitive position and excellent customer relationships. We are therefore investing in maintaining our bench strength and technical capability to position Petrofac for a recovery in new orders in 2020 and future growth," added Asfari.
Petrofac said it will issue its 2019 results on February 25.
By Evelina Grecenko; [email protected]
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