BAKU, Azerbaijan, Feb.25
By Leman Zeynalova - Trend:
Business performance net profit attributable to UK-based Petrofac Limited shareholders for 2019 decreased 22 percent to $276 million (2018: $353 million) due to lower revenues, higher tax, a decline in contract margins and prior year non-core asset sales, Trend reports with reference to Petrofac’s data.
Business performance net margin decreased to 5 percent (2018: 6.1 percent), said the company.
“Reported net profit increased to $73 million (2018: $64 million), reflecting lower exceptional items and certain re-measurements of $203 million in the year (2018: $289 million). These predominantly related to: — Non-cash impairment charges of $86 million (post-tax) following a review of the carrying amount of the Group’s investment in Block PM304 in Malaysia and $49 million (post-tax) triggered by the pending sale of our remaining 51 percent interest in our Mexican operations (2018: $196 million); — A non-cash fair value re-measurement of $37 million (post-tax) in relation to the carrying value of Pánuco contingent consideration, given the increasing uncertainty concerning the timing and outcome of the migration of the Pánuco Production Enhancement Contract to a Production Sharing Contract and whether the contingent pay out conditions will be achieved (2018: $43 million); and, — Other exceptional net items of $31 million (post-tax), including Group reorganization and redundancy costs, SFO related legal fees and JSD6000 installation vessel divestment costs (2018: $50 million),” reads the report released by Petrofac.
Petrofac is a leading international service provider to the oil and gas production and processing industry, with a diverse client portfolio including many of the world's leading integrated, independent and national oil and gas companies.
Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects.
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