Petrofac outlook sparks a mass sell-off despite 2012 profit rise

SHARES in oil services group Petrofac sank on the FTSE yesterday, despite it posting an upbeat set of full-year results.

Net profit rose 17 per cent to $632m (£417m), on earnings nine per cent higher at $6.3bn over the year.

In December, Petrofac had guided that profit would be at least 15 per cent higher than in 2011.

Analysts at Canaccord Genuity pointed to “somewhat vague guidance” for 2013, which spooked investors, although the broker added that it was happy with the guidance Petrofac had given.

Chief executive Ayman Asfari said he expected Petrofac, which designs and builds oil and gas infrastructure, to deliver “good growth in 2013”, adding that the firm remained on target to “more than double” group earnings by 2015.

The pipeline was up nine per cent to $11.8bn at the start of the year.

The FTSE oil services company also said it was raising its full year dividend by 17 per cent to 64 cents a share.

Petrofac was the biggest faller on the FTSE 100 yesterday, closing down 6.26 per cent at 1,497p.