Petrofac shares plummet on flat growth forecast for next year

Energy services provider Petrofac saw shares drop more than 15 per cent this morning after it said that it expected new income in 2014 to see "flat to modest growth year-on-year". It blamed delays in its Upper Zakum project in Abu Dhabi and the Berantai project in Malaysia. (Reuters)

When it comes to outlook for 2015, the FTSE 100 firm said it continues to "expect strong year-on-year growth in Group net income in that year" but added that achievement of its earnings target "will also be dependent on the timing of potential ECOM contract awards during 2014". It's still aiming to double 2010 net incomes of $431m (£267m) by 2015.

Petrofac, like other onshore contractors in the Middle East, has faced greater competition over the past few years from Chinese firms.

The group said it remains is on track to achieve its guidance of "modest growth" in net profits this year, expecting to exit 2013 with its "highest ever year-end backlog" as it continues to "secure new awards during the second half".