Oil and gas services provider Petrofac is expecting a stronger financial performance in the second half of the year after lowering it income forecast for 2014 last month.
In May, the company warned its profits could be slashed by as much as 10% blaming poor performance from its Integrated Energy Services (IES) division, among other issues.
Despite reporting progress across the IES portfolio, the company retained its updated 2014 net income guidance of $580-600million in its trading update statement.
Net profits were expected to be “significantly weighed” towards the second half of the year, Petrofac added.
Simultaneously, the company reported a record backlog of $20.1billion, compared to $15billion at the end of 2013.
Petrofac’s net debt increased in the same period by $600million to $1.3 billion, “reflecting ongoing investment in IES and our offshore installation vessel, payment of the 2013 final dividend and a continued high level of working capital,” the company said.
“We have had a good start to the year in ECOM (engineering, construction, operations and maintenance), delivering good operational performance, and securing more than $6billion of order intake,” said Ayman Asfari, Petrofac’s group chief executive.
“In integrated energy services, we remain focused on delivering improved operational performance on certain projects in the portfolio.
“Looking further ahead, whilst we continue to see strong demand for the provision of integrated services, we are prioritising those opportunities which make the best use of our existing core areas of strength, offer clear synergies with ECOM, and deliver attractive returns on capital employed.”
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