Why invest in Petrofac?
We enable our clients to meet the world's evolving energy needs. The long-term fundamentals of our business are sound, and our strategy remains valid – enabling Petrofac to build on established strengths, enhance competitiveness, maintain resilience and, through our newly-created new energies business, pursue the opportunities presented by the energy transition.
Our competitive differentiation
Leading international service provider to the energy industry
- Petrofac designs, builds, manages and maintains oil, gas, refining, petrochemicals and renewable energy infrastructure
- We are a trusted partner to a diverse portfolio of clients, providing a flexible offering of services and commercial models
- Our purpose is to enable our clients to meet the world’s evolving energy needs
- Our four values – driven; agile; respectful; open – are at the heart of everything we do
Well positioned in resilient markets, with an attractive growth opportunities
- Leading presence in our addressable MENA markets, which enjoy some of the lowest marginal costs of production in the world and resilient spending on energy infrastructure through the cycle
- Leading presence in the UK North Sea, where essential operations and maintenance activity provides a durable baseline of revenue
- Successfully diversifying our bidding pipeline into geographies beyond our core markets, like India, South East Asia, Africa, CIS, Europe and the US
Differentiated client offering for the energy transition
- Rapidly growing addressable markets where Petrofac has the necessary capabilities and track record from its oil & gas experience, including: offshore wind, hydrogen, CCUS and waste-to-value
- Unique life-of-asset service, with the capabilities to take a project from concept through to EPC delivery and then operations, giving the customer a single technical and delivery interface
- Targeting US$1 billion revenue in the medium term and continued strong growth thereafter
Strong competitive position underpins sector-leading margins
- Exceptional track record of safe, reliable, and innovative execution built over several decades
- Cost effective and local delivery model with a strong focus on in‑country value
- Best-in-class delivery being enhanced through simplifying organisation, creating an optimal structure supported by technology, efficient processes, and local, customer-focused delivery to a global standard
Financial position
- Capital light business model and targeting return to a net cash position
- Strong liquidity
- Clear, disciplined capital allocation framework
Our strategy at a glance
We are confident that our strategy, underpinned by an operating model that drives consistency, efficiency and stringent assurance, will position us well to capitalise on a range of diverse growth opportunities that will deliver superior returns and value to all stakeholders over the medium term.
Our strategy encompasses: best-in-class delivery, return to growth, and superior returns.
Best-in-class delivery
- Simplify the organisation
- Global capability, local execution
- Digitally enabled
- Strategic partnerships/technology neutral
Return to growth
- Customer centric approach
- Rebuild backlog
- Selective growth in new geographies
- Leverage capabilities in new energies
Superior returns
- Enhanced risk management framework
- Deliver premium margins, consistently
- Capital light business model
- Maintain strong balance sheet
Our new operating model and structure entail a single Group-wide technical services organisation, which delivers functional excellence to all Petrofac projects and operations globally. It is supplemented by a standalone, self-governing assurance function.
Return to growth in the medium term
We believe Petrofac remains a compelling investment proposition, driven by sustained recovery in addressable core markets, geographic diversification to target new market opportunities, and accelerated growth in new energies.
MEDIUM TERM
c.US$4-5bn
Group revenue
c.US1bn
Energy Transition revenue
>20%
Revenue contribution from New Energy
Net cash
Strong balance sheet
Financial performance
You can find our financial performance for the last five years below.
|
|
2023 |
20222 |
20212 |
20202 |
2019 |
|---|---|---|---|---|---|
|
Revenue (US$ million) |
2,496 |
2,567 |
3,038 |
4,066 |
5,530 |
|
Backlog (US$ billion) |
8.1 |
3.4 |
4.0 |
5.0 |
7.4 |
|
EBITDA (US$ million)1 |
(310) |
(150) |
56 |
211 |
559 |
|
EBIT (US$ million)1 |
(393) |
(229) |
(12) |
88 |
426 |
- Business performance before separately disclosed items
- The prior year numbers are restated as detailed in the Annual report and accounts