27 August 2008
Interim Results for the Six Months Ended 30 June 2008
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 interim results for the six months ended 30 June 2008.
Download the 2008 interim results in PDf format
• Revenue up 49% to US$1,576 million (2007: US$1,057 million)
• EBITDA(1) up 31% to US$179.2 million (2007: US$137.3 million)
• Net profit(2) up 57% to US$121.2 million (2007: US$77.2 million)
- Engineering & Construction net profit of US$99.2 million, up 81%
- Operations Services net profit of US$12.1 million, up 10%
- Energy Developments net profit of US$16.3 million, up 3%
• First half order intake(3) of US$1.7 billion (2007: US$0.6 billion) with backlog(4) of US$4.8 billion at 30 June 2008 (31 December 2007: US$4.4 billion)
• Earnings per share (diluted) up 57% to 35.13 cents (2007: 22.36 cents)
• Interim dividend up 53% to 7.50 cents (4.09 pence(5)) per share (2007: 4.90 cents)
Commenting on the results, Ayman Asfari, Petrofac’s group chief executive, said:
“Following continued excellent operational performance, I am very pleased to be able to report that Petrofac has continued to perform strongly in the first half of 2008.
Notwithstanding recent reductions in forecast short-term global economic growth prospects, the broad environment in which the group operates remains underpinned by long-term factors and demand for our services continues to be very strong. We expect to see significant investment in new and replacement production capacity by our customers, particularly in our core markets.
Our bidding pipeline, particularly in the Engineering & Construction division, remains healthy. We are currently bidding on several major projects with a combined value in excess of US$10 billion, which are scheduled to be awarded in the coming months and we are anticipating that our year end backlog will show good year-on-year growth. Our bidding pipeline for next year is looking even healthier.
With continued strong demand for our services and a positive outlook for new project awards, we are confident that the group is well positioned to deliver 2008 results towards the top end of market expectations* and strong growth over the medium-term.”
* The current market expectations for Petrofac’s net profit for the year ending 31 December 2008, referred to earlier in this announcement, are based on forecasts provided to Petrofac by 13 equity analysts. The range of those forecasts is from US$228.0 million to US$262.0 million.
(1) EBITDA means earnings before interest, tax, depreciation and amortisation and is calculated as profit from continuing operations before tax and net finance costs adjusted to add back charges for depreciation, amortisation and impairment.
(2) Net profit for the period attributable to Petrofac Limited shareholders.
(3) Order intake comprises new contracts awarded, growth in scope of existing contracts and the rolling increment attributable to contracts which extend beyond five years. Order intake is not an audited measure.
(4) Backlog consists of the estimated revenue attributable to the uncompleted portion of lump-sum engineering, procurement and construction contracts and variation orders plus, with regard to engineering services and facilities management contracts, the estimated revenue attributable to the lesser of the remaining term of the contract and, in the case of life-of-field facilities management contracts, five years. The group uses this key performance indicator as a measure of the visibility of future earnings. Backlog is not an audited measure.
(5) The group reports its financial results in US dollars and, accordingly, will declare any dividends in US dollars together with a Sterling equivalent. Unless shareholders have made valid elections to the contrary, they will receive any dividends payable in Sterling. Conversion of the 2008 interim dividend from US dollars into Sterling is based upon an exchange rate of US$1.8335:£1, being the Bank of England Sterling spot rate as at midday on 26 August 2008.