Petro­fac or­ders boost outlook

Up to $14m in first half with Mid­dle East core mar­kets

The National - News - Business - - The Region -

Bri­tish oil­field ser­vices com­pany Petro­fac said yes­ter­day it ex­pected an un­der­ly­ing net profit of US$135 mil­lion to $145m for the first half of 2017 as strong bid­ding ac­tiv­ity in its core mar­kets led to a ro­bust order book. Shares in the com­pany were down 2.6 per cent at 415 pence at 11am UAE time on the Lon­don Stock Ex­change.

“High level of ten­der­ing ac­tiv­ity is ev­i­dence of greater con­fi­dence in our core mar­kets and we con­tinue to have a very good pipe­line of bid­ding op­por­tu­ni­ties,” the chief ex­ec­u­tive Ay­man As­fari said.

Bid­ding ac­tiv­ity in the first half of the year was con­sis­tent with Petro­fac’s guid­ance of higher ac­tiv­ity in its core Mid­dle East mar­kets, the chief fi­nan­cial of­fi­cer Alas­tair Cochran said.

Full-year un­der­ly­ing net profit would be weighted to­wards the sec­ond half of the year in a ra­tio of about 40:60, he added. Order book stood at $13 bil­lion as of May 31, said the com­pany, which builds and op­er­ates oil and gas fa­cil­i­ties. It recorded an order book value of $14.3bn in 2016 as or­ders picked up in its core Mid­dle East mar­kets.

The com­pany’s high ex­po­sure to the Mid­dle East oil mar­kets re­sulted in good back­log cov­er­age for 2017 as record pro­duc­tion in the re­gion drove up con­tract awards.

Petro­fac is un­der in­ves­ti­ga­tion by the UK’s Se­ri­ous Fraud Of­fice (SFO) for its deal­ings with Monaco-based Unaoil, which Petro­fac said it had en­gaged pri­mar­ily in Kaza­khstan to pro­vide lo­cal con­sul­tancy ser­vices be­tween 2002 and 2009. Petro­fac sus­pended Mar­wan Che­did, its chief op­er­at­ing of­fi­cer, last month in re­sponse to the in­ves­ti­ga­tion, rais­ing con­cerns among in­vestors about the com­pany’s abil­ity to win work.

CFO Mr Cochran said yes­ter­day the com­pany was en­gaged with the SFO and had not paid any penalty, when asked if the com­pany had set aside cash in case of a fine.

High level of ten­der­ing ac­tiv­ity is ev­i­dence of greater con­fi­dence in our core mar­kets Ay­man As­fari chief ex­ec­u­tive of Petro­fac

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.