Petrofac to book £70m charge on Laggan-Tormore

Oil and gas support services firm Petrofac expects to recognise a final charge of £70m in the first half of the year after reaching final commercial settlement with one of its clients in respect of the Laggan-Tormore gas plant in the Shetland Isles.

“Whilst it is clearly disappointing that a portion of liquidated damages has been applied, Petrofac is nevertheless satisfied that this brings to an end the project, which has been operating successfully and exporting gas since February this year,” the company said.

Petrofac said the charge would be made up principally of liquidated damages.

Back in February, Petrofac posted a large drop in earnings for 2015, mainly on the back of delays to the Laggan-Tormore North Sea gas project.

At 1600 BST, Petrofac shares were down 0.9% to 817p.