05 March 2007
Final Results for the year ended 31 December 2006
Petrofac Limited (Petrofac, the group or the Company) is a leading international provider of facilities solutions to the oil & gas production & processing industry, providing project development, engineering, construction & facilities operation, maintenance & training services to many of the world’s leading integrated, independent & national oil & gas companies. Petrofac’s predominant focus is on the UK Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth of Independent States (CIS) & the Asia Pacific region, with 17 offices worldwide & approaching 8,000 employees.
Download the 2006 final results in PDF format
Revenue of US$1,864 million (2005: US$1,485 million), up 25.5%
EBITDA(1) of US$199.6 million (2005: US$115.6 million), up 72.7%
- Engineering & Construction EBITDA of US$127.3 million, up 100.5%
- Operations Services EBITDA of US$32.9 million, up 19.6%
- Resources EBITDA of US$40.1million, up 23.0%
Net profit(2) of US$121.9 million (2005: US$75.4 million), up 61.7%
Backlog(3) at 31 December 2006 of US$4,173 million (2005: US$3,244 million), up 28.6%
Return on capital employed(4) of 47.5% (2005: 32.5%)
Earnings per share (fully diluted) of 35.32 cents (2005: 22.41 cents), up 57.6%
Final dividend of 6.43 cents (3.30 pence (5)) per ordinary share taking dividends for the full year to 8.83 cents per ordinary share
The capital programmes & associated operating expenditure required to address increasing global energy demand & the depletion of existing production together with the limited capacity of the oil services industry to support such programmes should ensure that demand for the group’s services remains strong for the foreseeable future.
The current level of backlog within our Engineering & Construction division provides particularly strong visibility for current year revenue & we will continue our focus on project execution to ensure consistent margin delivery. We believe that we are well positioned to secure further new business, particularly in regions & on projects which have the potential for long term capital expenditure.
Our Operations Services division also has good visibility for revenue for the current & future years & will look to continue its growth both in the UKCS & internationally, in particular, the contract with Dubai Petroleum Establishment will make an important contribution to this growth & towards continued margin expansion.
The integrity management of hydrocarbon facilities is becoming an increasingly significant challenge for many asset owners. Through our strong engineering & operational capabilities, in particular within our growing Brownfield activity, we believe we are well positioned to assist clients extend the life span of their facilities whilst ensuring the highest standards of operational
safety are met.
Within our Resources division, we expect the investment in Cendor, Malaysia, to have substantially, if not entirely, recovered its costs during the first half of the year. During the year ahead, in addition to seeking further opportunities to expand our investment portfolio, in particular on the energy infrastructure side, we will be actively progressing our existing development assets, in particular Chergui, Tunisia, & the greater Don area assets in the UKCS.
The current financial year has started well &, with the group’s backlog at record levels, continuing focus on execution & strong demand for its services, the Board believes the group is well positioned to continue its growth during the current year & beyond.
Commenting on the results, Ayman Asfari, Petrofac’s Group Chief Executive, said: “I am very pleased to be able to report another set of strong financial results, in particular, with our E&C division reporting good growth in both revenue & profitability. Whilst we continue to face challenges, in particular because of industry-wide resource constraints, the benefit of our consistent focus on delivery is reflected in our results. demand for our services continues to be strong & we expect this to remain the case at least for the medium term which, with our backlog at its current levels, positions us well for continued growth during the current year & beyond.”