UK: Petrofac All Smiles with Results So Far in 2010

Petrofac, the international oil & gas facilities service provider, issues the following pre-close trading update ahead of the announcement of its audited results for the year ending 31 December 2010, expected to be on 7 March 2011.

* Net profit for the year expected to be in line with expectations for like-for-like year-on-year growth of at least 20%(1)

* Excluding the potential award of the South Yoloten project in Turkmenistan, order intake for the year is anticipated to be around US$4.4 billion, resulting in a year-end backlog position of around US$8.4 billion(2) (31 December 2009: US$8.1bn)

* Gross cash balances at 31 December 2010 expected to be around US$1.0 billion (31 December 2009: US$1.4bn)

Ayman Asfari, group chief executive, commented: “We are pleased with our excellent operational performance during the year to date and we are confident of delivering record results for 2010 in line with expectations for strong growth.

“Although the conversion process has taken longer than originally expected, we remain confident of moving into the EPC phase of the South Yoloten project in Turkmenistan. Should conversion not occur until 2011, we still expect to close 2010 with record levels of year-end backlog. Our good current prospects and excellent revenue visibility underpin our confidence that we will deliver continued strong growth in the coming year and beyond.”

Backlog and gross cash balances

Excluding the potential award of the South Yoloten project in Turkmenistan, group backlog is anticipated to be approximately US$8.4 billion at the end of the year (31 December 2009: US$8.1 billion) comprising approximately US$5.7 billion from Engineering & Construction (31 December 2009: US$6.2 billion) and approximately US$2.7 billion across the other business units (31 December 2009: US$1.9 billion).

Petrofac

Petrofac is a leading international provider of facilities solutions to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world’s leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and is a constituent of the FTSE 100 Index.

The group delivers services through seven business units: Engineering & Construction, Engineering & Construction Ventures, Engineering Services, Offshore Engineering & Operations, Training Services, Production Solutions and Energy Developments.

Through these businesses Petrofac designs and builds oil & gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac’s range of services meets its customers’ needs across the full life cycle of oil & gas assets.

With more than 13,000 employees, Petrofac operates out of six strategically located operational centres, in Aberdeen, Sharjah, Woking, Chennai, Mumbai and Abu Dhabi and a further 19 offices worldwide. The predominant focus of Petrofac’s business is on the UK Continental Shelf (UKCS), the Middle East and Africa, the Commonwealth of Independent States (CIS) and the Asia Pacific region.

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Source:Petrofac, December 17, 2010;