Markets: Worries grow over Petrofac’s ability to fill order book

By DOMINIC JEFF AND PETER RANSCOMBE
Published on 12/08/2012 03:41

IMPRESSIVE first-half profits at oil services firm Petrofac will be overshadowed by concerns that time is running out for hitting its orders target.

The FTSE 100 group, which has large operations in Aberdeen and Montrose, has been lagging behind its own target to sign $6 billion (£3.8bn) of contracts a year, although it may be able to confirm $1.1bn of unsigned orders tomorrow.

Ian Armstrong, an oil analyst at Brewin Dolphin, said: “They had a good trading update and said they are in line, but we are now halfway through August and there’s a gap in the order book that needs to be filled pretty soon.”

Petrofac has also said it is

interested in making acquisitions. Armstrong says those are likely to be in relatively low-cost environments such as

Africa or Malaysia.

Balfour Beatty is expected to defy the gloom surrounding the construction sector and unveil robust results in its half-year results on Wednesday.

The group, which worked on high-profile projects including the Olympics Aquatics Centre and Crossrail in London, is

expected to report an 8 per cent increase in underlying pre-tax profits to £149 million for the six months to 29 June.

A resurgent new car market is set to drive record half-year sales at car dealership Lookers on Wednesday. The group, which has more than 120 franchise dealerships, has seen its share price rise by 30 per cent since the start of 2012 after sales of new cars returned to growth.

The squeeze in the banking sector will dent profits at one of the UK’s biggest recruitment firms tomorrow. Michael Page, which employs 1,200 people in the UK, has seen its shares fall 30 per cent over the past year as lenders have shed staff amid the slowdown in the global economy and increasing regulation.

WEEK AHEAD

Monday: EasyJet EGM, Mitie

Tuesday: July inflation figures, John Menzies, Standard Life

Wednesday: Bank of England publishes minutes of August’s Monetary Policy Committee meeting, Balfour Beatty, Interserve, Lookers, Resolution

Thursday: Cineworld, Office for National Statistics retail sales figures for July

Friday: Rank