10 March 2008
Final Results for the year ended 31 December 2007
Petrofac Limited (Petrofac, the group or the Company), a leading international provider of facilities solutions to the oil & gas production and processing industry, today announces its results for the year ended 31 December 2007.
- Revenue of US$2,440.3 million (2006: US$1,863.9 million), up 30.9%
- EBITDA (1) of US$301.3 million (2006: US$198.3 million), up 51.9%
- Engineering & Construction EBITDA of US$173.9 million, up 36.6%
- Operations Services EBITDA of US$51.2 million, up 55.6%
- Energy Developments EBITDA of US$82.8 million, up 106.5%
- Net profit (2) of US$188.7 million (2006: US$120.3 million), up 56.9%
- Backlog (3) at 31 December 2007 of US$4,441 million (2006: US$4,173 million), up 6.4%
- Return on capital employed (4) of 47.3% (2006: 45.7%)
- Earnings per share (fully diluted) of 54.14 cents (2006: 34.87 cents), up 55.3%
- Final dividend of 11.50 cents (5.71 pence (5) ) per ordinary share taking dividends for the full year to 16.40 cents per ordinary share (8.15 pence), up 85.7%
For Petrofac, 2008 has started in the same vein as 2007 closed: with strong demand for our services and a fine record of execution from our businesses and we expect to deliver another year of good growth.
The level of backlog in the Engineering & Construction division provides good visibility for current year revenue. We expect to announce further contract awards in the coming months which, together with a healthy bidding pipeline in our core markets, should underpin continued strong revenue growth in 2008 and beyond with net profit margins being broadly maintained at recent levels.
We expect to see further good growth in the Operations Services division. We have targeted net profit margins (on revenue excluding pass-through revenue (6) ) of 5% in the Operations Services division in the medium-term and we expect to make further progress towards that target in 2008.
2008 should see significant activity within our Energy Developments division. We will undertake a further drilling programme in Permit PM304, offshore Malaysia, where we are actively reviewing options for the next phase of the field’s development. We now expect first gas from the Chergui development in Tunisia before the middle of the year. The development of the Don Area assets in the UKCS proceeds apace with a further drilling campaign commencing in the first half of this year. The refurbishment programme for the proposed production vessel and installation of subsea infrastructure is proceeding and we are on track to commence production in 2009. We continue to review further investment opportunities and are hopeful of adding to the division’s portfolio of investments during the current year.
Commenting on the results, Ayman Asfari, Group Chief Executive, said: “We are delighted with the performance of the group over the year and are very pleased to be able to report another strong set of financial results. We have delivered strong revenue and net profit margin growth across all three divisions. Operationally, we are performing well on our contract portfolio, including the new projects commenced during the year. Our Energy Developments operational assets performed well and we made good progress with our assets under development, including the submission of final field development plans for the Don Area assets. The demand for our services remains strong and given the strength of our backlog, expected E&C contract awards and a healthy outlook in terms of business development opportunities in our core markets, we are well positioned for continued strong growth over the medium term.”