Project slowdowns hit Petrofac

Project slowdowns hit Petrofac

Oilfield services leader Petrofac has warned that delays to projects mean its plan to double profits over five years is unlikely to be achieved, reflecting a deteriorating operating environment as projects are being delayed worldwide and clients demand cost reductions.

 

Delays to major projects in Abu Dhabi and Malaysia are blamed for a slowdown in earnings growth, which follows earnings warnings from other key players in the sector recently including Aker Solutions, Saipem and Subsea 7.

 

Petrofac warned that delays to the Upper Zakum project in the Gulf, which is majority owned by the Abu Dhabi National Oil Company along with junior partners ExxonMobil and the Japan Oil Development Company, would mean deferring earnings for 2014 and 2105 and beyond, but the delays could also increase the scale and duration of work there which is currently valued at US$2.9Bn.

 

Work on product enhancement projects on the Berentai development off the coast of Malaysia, which has been seen as the key driver of the company’s profits growth, has also been deferred which will hit Petrofac’s Integrated Services division.

 

Chief Executive Ayman Asfari said the five year profits growth target was still attainable but would depend on the timing of contract awards for its engineering, construction, operations and maintenance businesses.

 

Petrofac has been a fast growing company recently as it follows a policy of taking on more construction and execution risk than its rivals, and taking stakes in some of the upstream assets it is working on, including mature oilfields. The company has an order backlog of some $14Bn.

Please rate

Comments 

Ctrl + Enter

Most Read

We are a graduate-friendly organisation

We are a graduate-friendly organisation

We are proud to announce that we continue to be recognised as a graduate-friendly organisation and employed our third graduate. Her name is Ksenia, she holds a Bachelor degree in Media Studies. Ksenia will be assisting our marketing team in daily administrative tasks, performing market analysis and

Women in STEM: Breaking into the Boys’ Club

Women in STEM: Breaking into the Boys’ Club

STEM includes the disciplines science, technology, engineering, and mathematics. When it comes to STEM the old adage rings true, “The more things change, the more they stay the same.” Fields like tech and mechanical engineering are some of the fastest developing career fields in the

Join Industry Experts and Exhibitors at UK Construction Week 2017

Join Industry Experts and Exhibitors at UK Construction Week 2017

Staying up to date on the latest tech, trends, and safety strategies is not only helpful, it’s vital in the quickly changing landscape of today’s world. It seems like every time we turn around there are new updates and innovations. What better way to stay up to date than UK Construction

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.