Petrofac said yesterday it was increasingly confident it would deliver earnings growth of at least 20% for the full year.
The international oil and gas facility service provider said it had continued to win business during the period from July to date, with contracts secured in both its engineering and construction and offshore engineering and operations segments.
In 2008 the group reported top-line earnings of £262million and net profits of £165.6million on revenue of £2.08billion.
Petrofac said yesterday its backlog of work at the end of September was valued at about £5.3billion compared with £5.25billion three months earlier.
About £4.375billion of the backlog was in engineering and construction and just £925million across its other business units, it said.
It added that gross cash balances at the end of September stood at about £812million against £562million at June 30, with most of the advance payments due on awards secured in the first half of the year now received.
Petrofac said: “In engineering and construction we have made good progress on engineering and procurement activities and on the placement of construction sub-contracts on awards secured in the first half of the year.
“In offshore engineering and operations, our bid pipeline remains strong both in the UK and international markets, as customers look to obtain cost efficiencies by putting contracts out to competitive bids on their scheduled expiry.
“While this has resulted in some contracts where we are the contract holder being retendered, we view the retendering of contracts as an opportunity for growth.
“As previously reported, engineering services and training services activity levels continue to be depressed, although business-development activity has improved over recent weeks.”
Petrofac added that there were early signs that the improved oil-price environment was beginning to encourage customers to resume some of their more discretionary expenditure.
It said: “Water injection has begun on the West Don field, Don Southwest water injection is due to come on stream before the end of the year and gas-lift facilities have been commissioned”, adding that total 2009 production would be towards the lower end of its 3-5million barrel range previously guided. Shares closed down 3% at £10.30.
With more than 11,000 employees, Petrofac operates out of five operational centres, including Aberdeen, and a further 19 offices worldwide.
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