Petrofac falls as sector hurt

PETROFAC tumbled on the FTSE 100 yesterday as it was hurt by a profit warning from Italian peer Saipem.

Shares in the oil and gas services group closed down 7.02 per cent down at 1,615p, as the Italian energy engineering firm issued an unexpected profit warning.

The group, which is controlled by ENI, cut its guidance for 2012 and forecast a fall of 80 per cent in earnings before interest and tax in 2013 for its onshore business, and a 70 per cent fall in offshore activity.

“We expected some form of profit warning from Saipem, but this news has far surpassed our expectations,” analysts from Canaccord Genuity said yesterday.