Baku, Azerbaijan, Aug.28
By Leman Zeynalova - Trend:
Business performance net profit attributable to UK’s Petrofac Limited shareholders for the first half of the year decreased 19 percent to $154 million (2018 re-presented: $191 million) driven by project mix, lower contract margins, higher tax and prior year asset sales, Trend reports citing the company.
“Reported net profit of $139 million (2018: $17 million net loss) was impacted by post-tax exceptional items and certain re-measurements of $15 million (2018 re-presented: $208 million), predominantly for Group reorganisation and redundancy costs, SFO related legal fees and JSD6000 installation vessel disposal costs. In the prior period, approximately US$188 million of post-tax exceptional items and certain re-measurements were incurred in relation to asset sales and other items (see note 6 to the interim condensed consolidated financial statements),” reads a report from the company.
Business performance net margin decreased to 5.5 percent (2018 re-presented: 6.9 percent), reflecting business mix, a decline in contract margins, higher overheads and higher tax, according to Petrofac.
Revenue for the first half of the year increased 1 percent to $2,821 million (2018: $2,785 million), with an underlying increase in revenue in all operating segments being offset by prior year assets sales in Integrated Energy Services (IES), said the report.
“Engineering & Construction (E&C) increased 2 percent, reflecting project phasing and variation orders. Revenue in Engineering & Production Services (EPS) increased 4 percent, driven by growth in Projects. IES revenue decreased 27 percent, despite underlying growth in equity production, reflecting asset sales in the second half of 2018.”
Petrofac is a leading international service provider to the oil and gas production and processing industry.
It designs, builds, operates and maintains oil and gas facilities, which the company delivers through a range of flexible and innovative commercial models that can be aligned to an individual client, project or asset.
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