Petrofac buoyed by record order levels

Oil and gas services group Petrofac today stuck to its full-year earnings guidance after racking up record orders during the first half.

The firm said the backlog at its engineering, construction, operations and maintenance (Ecom) arm stood at $20.3 billion (£12.2bn) at the end of June, up from $15bn a year earlier.

Despite enjoying record orders, underlying operating profits fell 16 per cent to $340 million, but Petrofac said revenues and profits would be “significantly” weighted towards the second half, reflecting the timing of projects.

Chief executive Ayman Asfari said the group remained on track to deliver net profits of between $580m and $600 million.

He added: “In Ecom, we have already had our most successful year for new awards, bid at margins consistent with our medium-term guidance, reflecting ongoing high levels of investment by our customers in our core geographic markets and our strong competitive position.

“Our pipeline of bidding opportunities remains attractive and we are confident of securing a number of further awards and contract extensions during the second half of the year.”