Petrofac expects CAPEX to rise as of 2019
Baku, Azerbaijan, Aug.28
By Leman Zeynalova - Trend:
UK’s Petrofac company expects its capital expenditure (capex) to rise from $98 million in 2018 to $125 million as of 2019, Trend reports citing the company.
“Group capital expenditure is expected to be around $125 million in 2019 (2018: $98 million). We are reviewing options for our remaining non-core assets, consistent with our strategic objective to enhance returns,” said the company.
Petrofac said it remains well positioned for the remainder of the year, with backlog of $8.6 billion at 30 June 2019 (31 December 2018: $9.6 billion) and $2.6 billion of secured revenue for the second half of 2019.
“We continue to expect Engineering & Construction results for the full year to be in line with management guidance, with revenues expected to be around $4.5 billion and net margins at the low end of guidance. Overall Group profitability in 2019 is expected to be first half weighted, principally reflecting a decline in EPS margins and lower oil prices in the second half,” said the company in its report.
Looking further forward, revenues are expected to decrease in 2020 reflecting low new order intake in recent years, according to the UK company.
The Group said it has a busy tendering pipeline with around $13 billion of bid opportunities due for award in the second half of the year.
Petrofac is a leading international service provider to the oil and gas production and processing industry.
It designs, builds, operates and maintains oil and gas facilities, which the company delivers through a range of flexible and innovative commercial models that can be aligned to an individual client, project or asset.
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