Petrofac posts net loss. Hurt by Laggan-Tormore costs
- Business & Finance
Oilfield services provider Petrofac swung to $133 million net loss in the first half of the year, compared to a net profit of $136 million in the first half of 2014. Revenue rose to $3.2 billion, up from $2.5 billion a year ago.
Explaining the loss, the company said it recorded incremental losses on the contract in the first half of 2015 of approximately $263 million after tax as a result of additional completion and pre-commissioning work on the Laggan-Tormore gas plant.
“The additional costs predominantly relate to additional direct construction man-hours, along with the associated indirect, subcontractor and material costs. The rest of our portfolio remains in good shape and is performing in line with our expectations,” Petrofac said in a statement.
As for its Offshore Projects & Operations, in the first half, Petrofac secured a number of new wins and extensions, totalling approximately $800 million, including Oranje-Nassau Energie, CNR International and Eni.
The company said that overall activity levels within the Offshore Projects & Operations in the first half of 2015 were lower than the first half of 2014. This was primarily due to lower levels of activity on capital projects, such as the Laggan-Tormore gas plant on Shetland in the UK and the upgrade and modification of the FPF1 floating production facility (which will subsequently be deployed on the Greater Stella Area).
As a result of the lower activity, Petrofac laid off 200 workers from its offshore branch in 1H, with final headcount at the end of the first half standing at 5,300.
Offshore Energy Today Staff