Ayman Asfari
Group Chief Executive’s review

Relentless focus on operational excellence

In the backdrop of a challenging 2017, Petrofac delivered a strong performance.

Our clients demonstrated their confidence with both new and repeat business, we saw a recovery in new orders, progressed new organic growth opportunities, reduced capital intensity, delivered an impressive safety performance, and continued to deliver high standards of execution.

As a result, the business is on the path to recovery and well-positioned for sustained long-term success.

Ayman Asfari Group Chief Executive Group Chief Executive’s Review (PDF 0.4MB)

Group performance at a glance

Giving us confidence for the future

Revenue

US$6,395m Year ended 31 December 2016:
US$7,873 million

EBITDA 1

US$730m Year ended 31 December 2016:
US$704 million

Net profit 1, 2

US$343m Year ended 31 December 2016:
US$320 million

Return on capital employed 1

21% Year ended 31 December 2016:
17%

Backlog

US$10.2bn 31 December 2016 (restated) 3:
US$11.7 billion

Diluted earnings per share 1

100.9ȼ Year ended 31 December 2016:
93.3ȼ

Reported net (loss) / profit 2

US$(29)m Year ended 31 December 2016:
US$1 million
  1. Business performance before exceptional items and certain re-measurements.
  2. Profit attributable to Petrofac Limited shareholders.
  3. The Group no longer recognises backlog in respect of the Integrated Energy Services contracts.

2017 at a glance

  • Petrofac has delivered solid business performance results, good operational progress and strong financial discipline, while maintaining best-in-class and safe project execution for our clients
  • Reported net loss of US$29 million was impacted by exceptional items and certain re-measurement of US$372 million (post-tax), of which approximately US$350 million were non-cash items
  • In a busy year, the Group has also demonstrated its track record for operational delivery with more than 239 million man-hours worked across the portfolio
  • Our competitive position has helped secure a strong recovery in new orders in 2017, particularly in the second half of the year
  • We are delivering our clear, focused strategy. The Group has secured awards in a broad range of markets during the year. Operational excellence is maintaining our competitive position and protecting our margins. We are continuing to reduce capital intensity and enhance returns, evidenced by the disposal of non-core assets and our decision to exit the deep-water market

A leading global service provider

Our divisions

  • Engineering & Construction (E&C)

    Group revenue contribution

    graphic

    Engineering & Construction delivers onshore and offshore engineering, procurement, construction, installation and commissioning services on a lump-sum basis. We have more than 35 years of expertise in this area and our services encompass both greenfield and brownfield developments.

    Revenue

    US$4,801m (2016: US$5,928m)

    Net profit 1

    US$342m (2016: US$311m)
  • Engineering & Production Services (EPS)

    Group revenue contribution

    graphic

    Engineering & Production Services brings together our services’ capability across brownfield projects and operations, greenfield projects through concept, feasibility and front-end engineering and full project delivery as well as a range of operations, maintenance and engineering services for onshore and offshore projects.

    Revenue

    US$1,392m (2016: US$1,725m)

    Net profit/(loss) 1

    US$90m (2016: US$111m)
  • Integrated Energy Services (IES)

    Group revenue contribution

    graphic

    Integrated Energy Services provides an integrated service for clients under flexible commercial models that are aligned with their requirements. Our projects cover upstream developments – both greenfield and brownfield, related energy infrastructure projects, and can include investment.

    Revenue

    US$228m (2016: US$271m)

    Net loss 1

    US$(21)m (2016: US$(42)m)
  1. Business performance profit attributable to Petrofac Limited shareholders before exceptional items and certain re-measurements.

Our business model

Engineering expertise is at
the heart of everything we do

Our business model

Engineering expertise is at the heart of everything we do

Business model graphic
Operational progress 2017