Petrofac sees FY trading in line; Order intake £3bn
Updated : 08:28
Oilfield services firm Petrofac said full year trading was in line with guidance as new order intake reached £3bn and despite delays in project bids.
Group revenue for the full year was expected to be approximately $5.5bn, Petrofac said in an update on Tuesday.
The company, which designs, builds and operates oil and gas facilities, reiterated forecasts for its exploration & construction unit (E&C), with revenue around $4.4bn and net margin at the low end of guidance.
“Looking further forward, we continue to expect a decrease in group revenue in 2020 reflecting low new order intake in recent years. We currently have $4bn of secured revenue for 2020, comprising $3.4bn in E&C and $0.6bn in engineering & production services,” Petrofac said on Tuesday.
EPS revenue was expected to be around $0.9bn for the full year and net margin in the middle of Petrofac's guidance range.
The firm's integrated energy services was expected to report a modest profit reflecting average realised oil prices in the year.
Chief executive Ayman Asfari said there were $39bn of bid opportunities scheduled for award by the end of 2020 in Petrofac's core and growth markets.
“We have seen delays in E&C bidding processes in the second half of the year, which has further impacted new order intake following the previously announced loss of awards in Saudi Arabia and Iraq in the first half. However, we are well-placed on several opportunities,” Asfari said.
Petrofac in August reported a fall in first-half order intake and forecast lower 2020 revenue, citing uncertainty relating to an investigation into the oilfield services company's dealings in Saudi Arabia and Iraq.
The company in June said it had lost out on $10bn in global contracts due to the probe by the UK Serious Fraud Office (SFO), which led to a February conviction of its former head of sales David Lufkin on 11 counts of bribery related to Iraqi and Saudi contracts.
Petrofac said at the time that no charges had been brought against it or any other employees.