Petrofac's first half profits jump

Petrofac_profits

Petrofac's earnings for the first half of the year rose 6.6 per cent to US$246mn compared with the same period last year and revenues increased by 25.2 per cent to US$2.7 billion as the result of new awards.

Ayman Asfari, Petrofac's group chief executive commented on the interim results in a company report: "We have had a successful year to date, with good operational performance across our portfolio of projects and encouraging progress against our recently announced Integrated Energy Services strategy."

Petrofac first half of 2011 saw order intakes climb to US$2.2 billion, including new awards in Algeria and Iraq.

"We continue to deliver good operational performance across our portfolio of projects and we expect to deliver like-for-like net profit growth in 2011 of at least 15 per cent and in-line with current market expectations," Ayman added

The company's engineering & construction division showed good operational performance across the board in the first half of the year, including the completion of the Jihar gas plant in Syria and the In Salah Gas compression facilities and power generation in Algeria.

Petrofac have made substantial progress on the Asab field development and the GASCO natural gas liquids train in Abu Dhabi, the El Merk central processing facility in Algeria, the gas sweetening facilities for Qatar Petroleum and the fuel gas and gas oil pipelines project in Kuwait.

The company results were boosted by a number of new awards. In January 2011, the company was awarded a US$1.2 billion lump-sum EPC contract by In Salah Gas, an association between Sonatrach, BP and Statoil, to develop southern fields in the In Salah development.

The 50-month project, to be completed in phases, will support the maintenance of plateau gas production rates of 9 billion cubic metres per annum beyond 2013.

In March 2011, Petrofac was awarded its first contract in Iraq, a US$240 million engineering, procurement and construction management project with Shell. The Majnoon field in southern Iraq is one of Iraq's largest developments. The company is providing engineering, procurement, fabrication and construction management services for the development of a new early production system comprising two trains each with capacity for 50,000 barrels of oil per day, along with upgrading of existing brownfield facilities. Work on the project began in mid-2010 and is expected to complete during the fourth quarter of 2012.

Petrofac also secured a number of new contracts and extensions, including a contract to provide maintenance services on the Rumaila oilfield in Iraq for BP.

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