Broker snap: Evolution pleased with Petrofac's new deal

20th Oct 2011 12:52

Evolutions Securities has kept its add rating on oil and gas facilities provider Petrofac, saying that while today's statement contained very little new information, the new deal it announced is a "significant step forward".The firm said that it would deploy its floating production facility (FPF1) in the North Sea, selling an 80% interest, getting a five-year duty holder contract and its Integrated Energy Services (IES) division obtaining a 20% interest in Ithaca Energy's Greater Stella Area development project."The FPF1 deal is a typical Petrofac innovative deal - swapping an interest in a 'hard' asset for an interest in an upstream development giving Petrofac shareholders leverage to the resource upside," said analyst Keith Morris."The lack of performance in recent months presents an attractive entry point with newsflow likely on other IES projects in the coming months," he said.The broker kept its target price at 1,700p.By 12:47, shares were 0.08% higher at 1,333p.BC