Source - Alliance News

Petrofac Ltd on Tuesday provided a half-year trading update, giving its shares a lift.

The oilfield services firm's performance and expectations for the six months ending June 30 remain in line with guidance provided at the end of May, the company said.

Petrofac shares were up 4.5% to 124.39 pence each in London on Tuesday morning.

The Jersey-based oil company said its Engineering & Construction arm is expected to deliver first-half revenue of around $600 million and a loss before interest and tax of $35 million to $45 million. In the second half, Petrofac is expecting similar revenue and a marginal operating profit. However, the unit is expected to secure strong order intake in the second half and deliver backlog growth year-on-year.

Looking ahead, Petrofac said it is well positioned with a ‘healthy’ pipeline scheduled for award in the next 18 months. It expects to meet its guidance of an earnings before interest and tax margin of 5% to 6%.

Meanwhile, Zurich-based Hitachi Energy Ltd on Tuesday said it has entered an offshore wind market collaboration with Petrofac. The companies aim to decarbonise power systems and deliver clean energy, without providing financial figures or term lengths of the agreement.

‘We are delighted to collaborate with Petrofac to help meet the growing need for large-scale offshore wind generation and deliver clean renewable electricity to consumers. As leaders in our respective fields, this collaboration will create added value for our customers and help accelerate the energy transition,’ said Niklas Persson, managing director of Hitachi Energy’s grid integration business.

‘We look forward to bringing our industry-leading experience and deep domain knowledge together, to benefit our customers and power millions more homes using renewable energy,’ added Elie Lahoud, chief operating officer of Petrofac's Engineering & Construction arm.

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