Petrofac spots ‘early signs’ of North Sea recovery

Petrofac news
Petrofac workers have accepted a new deal, averting the threat of North Sea strikes

Oil service firm Petrofac said today that it had spotted “early signs of recovery” in the UK North Sea, despite continued low activity, utilisation and order intake.

The UK-headquartered firm’s  engineering and construction business recently installed the jacket for the Borwin 3 offshore wind project in the North Sea. Sail-away of the topside platform from the UAE is slated for the third quarter.

It also secured extensions and new awards with a range of clients, including Chevron and ENI.

In a trading update, the company said it had taken in £1.3 billion worth of new orders globally so far this year.

Petrofac bosses said £15bn of “bid opportunities” were due to be awarded in the second half of 2018.

Net debts are expected to be around £675 million at the end of June, compared to £450m six months ago.

Petrofac chief executive Ayman Asfari said: “We are trading in line with expectations, delivering best-in-class project execution, continued momentum in new orders and further progress in our strategy.

“We have secured new orders in the year to date of £1.3bn, with awards in both our core and growth markets.

“We are well-positioned on several bids and tendering activity remains high with around £15bn of bid opportunities due for award in the second half of the year.

“We delivered a major milestone in April with the sale of the JSD6000 installation vessel, in line with our strategy of focusing on our core and reducing capital intensity.

“Furthermore, we are well positioned for the second half with good revenue visibility, a strong competitive position and healthy liquidity.”

The company will announce its results for the first half of the year on August 29.

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