UAE-affiliated Petrofac reports 14% y-o-y increase in profits

Oilfield services company Petrofac which has operational centres in Abu Dhabi and Sharjah reported a net profit of $73m for the year ending December 31, a 14 per cent year-on-year increase.

Its operating income rose 38.3 per cent to $220m, while selling, general and administrative expenses fell 5 per cent to $216m.

Finance expenses dipped 28 per cent to $58m and revenue also dropped 5 per cent to $5.5bn.

Petrofac added that its net profit “was negatively impacted by exceptional items and certain re-measurements of $203m, of which about $172m were non-cash items.” Also, the agreement to sell Petrofac’s remaining 51 per cent in its operations in Mexico triggered a non-cash impairment charge of $49m.

The company has a new order intake of $3.2bn, including a backlog of $7.4bn as of the end of last year. New order intake from Algeria, Oman and Netherlands alone amounted to $2.1bn.

Read: Abu Dhabi’s ADNOC awards Dhs6bn contracts for Dalma Gas project

In a press statement issued alongside the results, Ayman Asfari, Petrofac’s group chief executive, remained bullish about further business prospects saying, “We expect 2020 to be a year of transition. We are encouraged by the improving market outlook, recent new awards and $37bn of bid opportunities scheduled for award by the end of 2020.”

The recent new awards include one earlier this month wherein Abu Dhabi National Oil Company (ADNOC) awarded two contracts valued at over $1.65bn for the construction of offshore facilities for the Dalma Gas Development project to Petrofac Emirates and a joint venture between Petrofac and Sapura Energy Berhad.

Both contracts are expected to be completed in 2022 and will enable the Dalma Gas Development project to produce around 340 million standard cubic feet per day of natural gas.

Last week, the London-listed Petrofac which employs around 3,000 people in the UAE was also awarded a $40m contract by the Sharjah National Oil Corporation for the development of a project in the UAE.

In September last year, Petrofac won a contract to provide managed maintenance services for the Haliba field, operated by Abu Dhabi’s Al Dhafra Petroleum