Petrofac revenue $3.9bn amid North Sea wins

Oil and gas services company Petrofac said it secured $500 million of new contracts and extensions in the UK North Sea in the six months to June 30 as revenue rose 22% to $3.9 billion.

Profit for the period was $12 million compared to the loss of $182 million it recorded during the same period last year amid problems at the Laggan-Tormore gas processing plant west of Shetland.

The new North Sea business included a service operator contract with Anasuria Operating Company, a contract with BP and a three-year contract extension for Total E&P UK.

Petrofac said its backlog remained at high levels at $17.4 billion “giving excellent revenue visibility for the second half of 2016 and full year 2017.”

Petrofac chief executive Ayman Asfari said: “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.”

Petrofac will maintain its interim dividend at 22 cents per share.

The company has 18,200 employees around the world including long-term contractors.

Meanwhile, Petrofac said Alastair Cochran will join the company from BG Group on October 3 to succeed Tim Weller as chief financial officer.

Weller leaves in October to be CFO of G4S.

Cochran was most recently transition head of BG Global Strategy & Business Development overseeing the integration of BG Group following its acquisition by Royal Dutch Shell.

Cochran began his career with KPMG and spent years in investment banking with Morgan Stanley and Credit Suisse advising on a wide range of capital market and M&A transactions.  

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