Petrofac’s share price rose nearly 10% to 939p despite mounting costs.
The firm confirmed staffing issues, work delays and harsh weather conditions led to an additional £30million in incurred costs for its Laggan-Tormore project. The bloated expenditure brings the company’s total loss in the year to date to £140million.
However, the announcement did little to dampen its share price.
Will Hedden, dealer at Kondon Capital Group, said the rise was a reflection of the market’s decision to look beyond Shetland and towards the firm’s contract extension pipeline, which totals £253million over the next three years.
He said: “The oilfield services firm had a rather gloomy looking set of number this morning but the market has taken it in its stride preferring to focus on prospects. Short term issues are being overlooked for a healthy long term pipeline of projects and growth in the order book, so even with net profits being weighted to the second half of the year the stock has reacted strongly this morning, trying to close the gap created with the disappointing update to the Lagan-Tormore Project in Shetland back in late April.”