Petrofac eyes modest profit growth in 2013

 
Suzie Neuwirth
UK OIL services firm Petrofac yesterday predicted “modest growth” in profits this year, with earnings in the first half of 2013 hindered by a terrorist attack on an Algerian gas site in January.

The FTSE 100-listed company said that profits would be significantly weighted towards the second half of the year and that it expects the In Salah gas site, which was impacted by the attack on a neighbouring development, to restart operations during that period.

A number of projects in Petrofac’s Integrated Energy Services division – which includes oil fields in Mexico and Malaysia - are also planned to commence in the second half of the year.

“We have made good progress in the year to date,” said chief executive Ayman Asfari.

“We have secured $2.6bn (£1.7bn) of order intake and our portfolio of active projects is in excellent shape. We continue to see strong demand for our services, which, together with our competitive positioning, should see us grow our onshore engineering & construction backlog over the course of the year.

“In 2013 we expect to achieve modest net profit growth and, looking further ahead, remain on track to more than double our 2010 group earnings by 2015.”

The group’s backlog stood at $11.9bn on 31 May, up slightly from 31 December 2012.

Petrofac shares have lost more than 20 per cent so far this year, partly in response to a fall in the oil services sector after profit warnings at competitors Saipem and Aker Solutions. Petrofac’s shares closed 1.2 per cent down at 1,219p.

Petrofac shares have lost more than 20 per cent so far this year, partly in response to a fall in the oil services sector after profit warnings at competitors Saipem and Aker Solutions.

But Weller said Petrofac was unaffected by problems facing its competitors. He also said the firm would not be bidding for projects in Mexico’s Chicontepec basin where it had been carrying out a number of studies.