Engineering news
Oilfield and gas services group Petrofac has posted a net loss of $133 million for the six months ended June 30, compared with a net profit of $136 million a year earlier, after an increase in costs at its Laggan-Tomore gas project in the Shetland Islands.
The troublesome project is expected to produce its first gas in the final quarter of this year, with additional costs of around £30 million recognised in relation to final completion, pre-commissioning and commissioning activities.
The company recorded strong revenue growth, up 25% to $3.2 billion, as a number of its onshore engineering and construction projects move into execution stage. Meanwhile, it reported its engineering, construction, operations and maintenance (ECOM) unit has secured about $6.0 billion worth of orders in the year to date.
Ayman Asfari, Petrofac's group chief executive, said: "Against the backdrop of a challenging environment for the industry, we are in a strong position. We have record levels of backlog in ECOM, which brings excellent revenue visibility for the rest of this year and beyond.
“Our clients are continuing to invest in large strategic projects in our core markets, where we have an unrivalled track record and a very cost-competitive delivery capability. We continue to drive operational efficiencies to maintain our cost-competitiveness and we are working with our clients to address cost pressures and generate value for them whilst protecting our margins.
"As we look forward, we are focusing on our traditional areas of strength, driving for best in class operations and project delivery and improving our cash generation as we reduce the capital intensity of the business and deliver value from our IES (integrated energy services) portfolio."
Shares in the company rose 2.4% to 748.5 pence following the news on the London Stock Exchange.