x Abu Dhabi, UAEFriday 21 July 2017

Petrofac bullish on profit forecast

Petrofac, the British oil and gas services company, said it was on target to meet its net profit ambitions after projects in Turkmenistan and Iraq performed well

Petrofac, the UK oil and gas services group that has close ties to the UAE, yesterday said it was on course to meet its net profit target after projects in Turkmenistan and Iraq performed strongly.

The company, which designs and builds facilities used in extracting and processing oil and gas, also said Keith Roberts, its chief financial officer, would retire at the end of the year and be replaced by Tim Weller.

Mr Weller will join from his role as the chief financial officer of global telecommunications company Cable & Wireless in September, the company said.

Petrofac said its backlog of orders stood at US$11.4 billion (Dh41.87bn) on June 30, boosted by a second maintenance contract win in Iraq.

"We have had a successful first half of 2011. We are well on course to deliver like-for-like net profit growth in 2011 of at least 15 per cent, in line with our previous guidance," said Ayman Asfari, Petrofac's chief executive.

He said the company secured $2.1bn of orders in the first half of this year, including the second Iraqi contract for maintenance services on BP's Rumaila oilfield.

The total group backlog gives "outstanding revenue visibility", Mr Asfari said.

Total revenue stood at $4.4bn at the end of last year, up from $3.6bn in 2009.

Mr Asfari, who joined Petrofac in 1991, oversaw the joint venture in 2008 between Petrofac and Mubadala Petroleum Services, the energy offshoot of Mubadala Development, a strategic investment company owned by the Abu Dhabi Government.

Since teaming up with Petrofac, Mubadala's energy unit has aggressively pursued oil and gas projects in the Turkmen and Kazakh sectors of the Caspian Sea.

The company has grown from a relatively modestprivate business to an FTSE 100 group member with about 14,000 staff in 27 countries.

Shares in Petrofac have outperformed Britain's blue-chip index by about 9 per cent in the past three months.