Petrofac set to hit 15pc profit growth in 2012

OIL services company Petrofac is on track to deliver net profit growth of 15 per cent this year, it said yesterday, boosted by a strong pipeline for next year.

The FTSE 100 firm, which designs and builds oil and gas infrastructure, said that operations continued to perform in line with expectations, with particularly good performance in the engineering, construction, operations & maintenance division.

There is a strong pipeline of bidding opportunities for 2013, Petrofac said, adding that it continued to see “high levels” of bidding activity.

Over the year to date, Petrofac has netted $5.3bn (£3.3bn) of major contracts in Saudi Arabia, Iraq, Kuwait and the UK.

The group backlog is expected to be $11.6bn at the end of the year, up from $10.8bn at the end of 2011.

“We are well positioned to grow next year and beyond and we are confident of achieving our target of more than doubling our recurring 2010 group earnings by 2015,” chief executive Ayman Asfari said yesterday.

Sanjeev Bahl at Numis hailed a “positive outlook statement”. “2013 is likely to be a true test of Petrofac’s ability to win work and maintain high net margins in the face of growing Asian competition,” he added.

Shares closed down 1.13 per cent yesterday at 1,661p.