Petrofac has swung to an H1 net profit of $12m, from a year-ago loss of $182m. Revenue was $3.89m, from $3.18m.
CEO Ayman Asfari commented:
"We have delivered a positive set of results for the first half of the year, reflecting good project execution. We are on track to meet expectations for the full year 2016 and our high level of backlog gives us excellent revenue visibility for 2017.
"While there have been few project awards in our core markets in the year to date, we have a strong pipeline of bidding opportunities and we are actively bidding on a large number of projects. We have one of the most cost-competitive delivery capabilities in our industry, enabling us to maintain our bidding discipline while delivering value for our clients.
"We have made good progress towards reducing the capital intensity of the business and we remain committed to delivering value from the IES portfolio."
- Strong growth in revenue to US$3.9 billion (2015: US$3.2bn) with record activity levels
- Strong growth in net profit and EBITDA reflecting the phasing of profit recognition
- Expect to deliver net profit in 2016 in line with expectations: consensus net profit approximately US$440m before recognising the final charge on Laggan-Tormore and excluding IES
- Exceptional items and certain re-measurements of US$123 million post-tax, primarily non-cash items related to IES; net book value of IES portfolio stands at US$1.6 billion.
- Robust balance sheet with net debt of US$877 million at 30 June 2016 (31 December 2015: US$686m); interim dividend maintained at 22.00 cents per share (2015: 22.00 cents)
- Group order intake of US$1.0 billion in 1H 2016; strong bidding pipeline for Engineering & Construction for 2H 2016 and 2017
- Group backlog stood at US$17.4 billion at 30 June 2016 (31 December 2015: US$20.7bn), giving excellent revenue visibility for 2H 2016 and 2017
- Good progress on delivering cost efficiencies from Group reorganisation and operational excellence initiatives.