Petrofac shares drop

Shares in Petrofac dropped 15 per cent in early trading after the energy services firm made cautious comments on the outlook for its business over the next two years.

The company still expects an increase in profits in 2015 from its integrated energy services (IES) division, which invests in fields alongside oil companies, but said the rise would be dependant on the timing of contracts.

Petrofac said profits would also be dependant on contracts being awarded during 2014 at its engineering, construction, operations and maintenance (ECOM) business.

Ayman Asfari, Petrofac’s chief executive, said: “We expect group net income in 2014 to show flat to modest growth year-on-year reflecting the rephasing of both the Upper Zakum project in Abu Dhabi and the second stage of the Berantai project in Malaysia.

“Given the earnings growth expected in 2015 from IES – driven by the anticipated step-up in production from our equity upstream investments – we continue to expect strong year-on-year growth in group net income in that year, although the achievement of our 2015 earnings target will also be dependent on the timing of potential ECOM contract awards during 2014.”