Petrofac on track to meet targets

20th Oct 2011 07:02

Petrofac, the FTSE 100 provider of facilities to the oil and gas production industry, has continued to perform in line with expectations in the year-to-date, the firm has announced.The group cited good progress across all its divisions, particularly Offshore Engineering & Operations which has seen activity remain at record levels.Petrofac chief executive Ayman Asfari confirmed that he expects the group to deliver like-for-like net profit growth of at least 15% in the year ending 31 December, which is in line with current market expectations."We are encouraged by the number of Integrated Energy Services opportunities that we have identified and are pursuing, which combined with our existing backlog and a continued positive outlook for our Engineering & Construction and Offshore Engineering & Operations businesses, gives us confidence inachieving our target of more than doubling our recurring 2010 group earnings by 2015," Asfari said.The firm said that its gross cash balance of $1.8bn at 30 September is expected to fall to around $1bn by the end of the year, as spending on Integrated Energy Services projects is increased and customer advances on Engineering & Construction projects unwind.Separately, the group also announced that it will acquire a 20% interest in the Stella and Harrier, Hurricane and Helios discoveries within the Greater Stella Area development in the North Sea, following the deployment of a floating production facility. "The equity position will be established through an earn-in type arrangement in Stella and Harrier which is effected at first oil, expected in the second half of 2013, and the transfer of an interest in Hurricane and Helios," the statement said.BC