Petrofac shares jump after it wins a $700m deal in Russia

Courtney Goldsmith
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A worker changes pipes in the former Yuk
Petrofac announced to big contract wins this week (Source: Getty)

Shares in Petrofac rose today after the oil services firm announced it won a $700m (£535m) contract on a Russian gas project, meaning two deals since yesterday have secured more than $1bn to its backlog.

Yesterday, Petrofac revealed a €340m (£311m) contract in Turkey for Gazprom, and today the firm said it won a contract with Sakhalin Energy for its onshore processing facility on Sakhalin Island.

The company's share price closed up 8.56 per cent at 446.3p after announced its 10th contract award in Russia.

Investors appear to be pleased that business is progressing as usual for the firm despite a rocky few months.

In August, Petrofac's chief executive Ayman Asfari was sanctioned by Italy's market watchdog over alleged insider trading, which he refutes and plans to appeal.

Petrofac also took a hit in May when it revealed it was under investigation by the Serious Fraud Office (SFO) for suspected bribery, corruption, and money laundering. In its half-year results Petrofac said it continued to engage with the SFO.

On the contract announced today, Sunder Kalyanam, group managing director for Petrofac's engineering and construction growth business said:

"We have been executing projects in Russia since the 1990s and this marks our tenth in the country. Sakhalin Island is a very familiar location for Petrofac as our Sakhalin Technical Training Centre (STTC), established in 2008, has been helping meet increased local demand for competent personnel specialising in the oil and gas industry.

"From STTC we are able to supply a wide range of technical support services including front-end engineering and design, pre-commissioning and commissioning, operations and maintenance as well as technical manpower support. We look forward to working with Sakhalin Energy to deliver this strategically important project."

Read more: Petrofac has slashed its dividend as low oil prices limit cash flow

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