Petrofac profit declines by 98 per cent

24 February 2016

UK-based contractor gives an update on projects in Algeria, Abu Dhabi, Oman and Iraq

UK-based oil and gas contractor Petrofac has reported a net profit of $9m, down by 98 per cent compared to the $581m it recorded in 2014, as low oil prices weighed on earnings.

Over 2015 Petrofac saw an order intake of $6.1bn, securing major awards in Kuwait and Saudi Arabia, and the company’s backlog stood at a record level of $12.5bn at the end of the year.

During the year it completed the $524m Bab Compression project and phase one of the $187m Bab Habshan project. Both projects are located in Abu Dhabi.

In Iraq, Petrofac completed the second of three trains on the $3bn Badra field development.

The third train is expected to be completed shortly, according to the earnings statement released on 24 February.

Over 2015 Petrofac also completed a central processing facility (CPF) as part of a $700m package for the In Salah Gas Company in Algeria.

In Salah Gas Company is a joint venture of state-owned Sonatrach, UK-based BP, and Norway’s Statoil. The package is part of the $2.1bn In Salah Gas Compression Project.

During 2015 Petrofac announced its first contract in Bahrain. This was an agreement to supply a new gas dehydration facility for Tatweer Petroleum.

It secured a $100 million one-year contract extension with South Oil Company (SOC) to support its Iraq Crude Oil Expansion Project.

Petrofac was awarded a $900m engineering, procurement and construction management (EPCm) contract by Petroleum Development Oman to provide services for the Yibal Khuff project.

In its earnings update Petrofac said it had “made good progress” on the Petroleum Development Oman contract as well as the Al Taweelah alumina refinery project in Abu Dhabi.

Commenting on its Chergui gas concession in Tunisia, Petrofac said over the year “the asset continued to produce near capacity, other than when interrupted due to infrequent periods of civil unrest.”

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