Petrofac’s Engineering & Construction revenues down

Oil&Gas Materials 25 February 2020 12:24 (UTC +04:00)
Petrofac’s Engineering & Construction revenues down

BAKU, Azerbaijan, Feb.25

By Leman Zeynalova - Trend:

Revenues in Engineering & Construction (E&C) division of the UK-based Petrofac company decreased 5 percent to $4,475 million in 2019, as compared to $4,713 million in 2018, reflecting project phasing and mix, Trend reports with reference to Petrofac’s data.

Business performance net margin decreased in the mentioned division to 6.2 percent (2018: 7.2 percent), reflecting project mix and higher tax, reads the report released by Petrofac.

“Business performance net profit decreased 18 percent to $278 million (2018: $338 million), reflecting the decline in revenue and margin.Backlog in the E&C division stood at $5.7 billion at 31 December 2019 (2018: $8.0 billion), reflecting low new order intake and progress delivered on the existing project portfolio. Headcount in the E&C division was 6,650 at 31 December 2019 (2018: 6,500),” said the company.

New order intake for the year totalled $2.1 billion, the report says.

“We made steady progress delivering our portfolio of projects in 2019. Power transmission commenced from the BorWin3 offshore grid connection project in the German North Sea, while the RAPID project in Malaysia is now ready for start-up. We delivered a major milestone on the Upper Zakum Field Development in the UAE and with handover of the central island, the project is now substantially complete. In Saudi Arabia, the Jazan South tank farm is mechanically complete, whilst the Jazan North tank farm and Fadhili projects are nearing mechanical completion. In Kuwait, the KNPC Clean Fuels project is substantially complete and we achieved a major milestone on the Lower Fars Heavy Oil plant in Kuwait with the commencement of steam injection. The Khazzan Phase 2 (Ghazeer) gas development in Oman remains ahead of schedule,” said George Salibi E&C Chief Operating Officer.

Petrofac is a leading international service provider to the oil and gas production and processing industry, with a diverse client portfolio including many of the world's leading integrated, independent and national oil and gas companies.

Petrofac designs and builds oil and 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.


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