Petrofac swings back to profit in H1

Oil and gas services firm Petrofac achieved net profits of $139mn in net profits for the first half, compared with a $17mn loss a year earlier, the UK-based company reported on August 28.

Petrofac attributed the improved performance to exceptional items and an uptick in revenues. It did not book any asset impairment charges in the period, compared with $244mn a year earlier. Its revenues were up 2% at $2.821bn. Its engineering and construction division brought in most of this, some $2.281bn; while engineering and production earned $448mn and integrated services some $99mn.

Ebitda slumped 8.7% to $305mn, owing to thinner margins.

Petrofac’s order backlog stood at $8.6bm at the end of June, down from $9.6bn six months earlier. But the group said it was “well positioned” for the rest of the year, with “a busy tendering pipeline” of around $13bn in bids opportunities due for award in the second half.

“The strength of our pipeline in indicative of the improving market outlook,” it said. “Consequently, the group is committed to invest in maintaining bench strength and technical capability in anticipation of a return to growth in the medium term.”

Since the end of June, Petrofac has scored a front-end engineering design contract off Abu Dhabi and an engineering and services contract in the Caspian Sea.