BAKU, Azerbaijan, Dec.17
By Leman Zeynalova – Trend:
UK-based Petrofac company, a leading international service provider to the oil and gas production and processing industry, expects its revenues to stand at $5.5 billion as of 2019, Trend reports citing the company.
“We expect to report good results for 2019 in line with prior guidance. Group revenue for the full year is expected to be approximately $5.5 billion. We continue to expect engineering and construction results for the full year to be in line with management guidance, with revenue around $4.4 billion and net margin at the low end of guidance. Engineering and procurement services revenue is expected to be around $0.9 billion for the full year and net margin in the middle of our guidance range. Integrated Energy Services is expected to report a modest profit reflecting average realized oil prices in the year,” said the company.
Looking further forward, Petrofac continues to expect a decrease in Group revenue in 2020 reflecting low new order intake in recent years.
“We currently have $4 billion of secured revenue for 2020, comprising $3.4 billion in engineering and construction and $0.6 billion in engineering and procurement services. As previously guided, net margins in engineering and construction are expected to decline in 2020 reflecting a higher contribution from contract awards in lower margin markets and a $30 million investment in maintaining bench strength and technical capability in 2020. This investment ensures Petrofac can capitalize on the improving market outlook and best positions the Group for a recovery in new orders in 2020 and growth thereafter.”
Petrofac 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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