Modest earnings growth for Petrofac

Petrofac Limited, a UK-based oilfield services provider, has released their final results for the year 2013, reporting Net profit of US$650 million.

Compared to the last year’s US $6.2 billion, revenues are  up by 1% to US$6.3 billion. EBITDA is up 17% to US $1,031 million (US $883 million in 2012). Net profit is up 3% to US$650 million (2012: US$632 million), while earnings per share (diluted) up 3% to 189.10 cents (2012: 183.88 cents).

Full year dividend was up 3% to 65.80 cents per share (2012: 64.00 cents); final dividend of 43.80 cents (26.25 pence) per share (2012: 43.00 cents). Backlog rose 27% to the record level of US$15.0 billion at 31 December 2013 (2012: US$11.8 billion)

The company received US$3 billion in new awards in the year to date, which, together with Petrofac’s opening backlog position, gives good revenue visibility for 2014 and beyond.

Petrofac’s final net debt position was US$0.7 billion at 31 December 2013 (2012: US$0.2 billion net cash)

Ayman Asfari, Petrofac’s Group Chief Executive commented on the final results: “Having delivered modest earnings growth and good operational performance in 2013, we begin 2014 in an encouraging position with record backlog, a project portfolio in excellent shape, a strong bidding pipeline and US$3 billion of new awards already secured in the year to date. We see significant long-term growth potential for Petrofac and the depth of capability, skills and talent across the Group gives me confidence that we will continue to build on our proven track record this year and beyond. In line with our previous guidance, we expect flat to modest growth in net profit in 2014 and remain confident of a return to strong earnings growth in 2015.”

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