Petrofac warns of flat to modest growth after bumper earnings

Suzie Neuwirth
FTSE 100-listed oil and gas services firm Petrofac yesterday reported a three per cent rise in profit in 2013 but warned of weak growth this year, in line with previous guidance and market expectations.

The company said it expected flat to modest growth in 2014 due to project delays, before a return to strong earnings growth in 2015.

“Having delivered modest earnings growth and good operational performance in 2013, we begin 2014 in an encouraging position with record backlog, a project portfolio in excellent shape, a strong bidding pipeline and $3bn (£1.8bn) of new awards already secured in the year to date,” said chief executive Ayman Asfari.

Petrofac had already issued a profit warning back in November, saying that it anticipated slowed growth due to the expansion of the Upper Zakum offshore oil field development in Abu Dhabi and the redevelopment of the second stage of the Berantai gas project in Malaysia.

Full-year revenue edged up one per cent to $6.3bn and the dividend rose three per cent to 65.8 cents per share.