Petrofac Ltd - Jersey-based provider of oilfield services - Reports revenue of USD4.08 billion for 2020, falling from USD5.53 billion in 2019. Swings to pretax loss of USD171 million from profit of USD192 million the year before.
The 2020 results demonstrate "it has been a difficult year for Petrofac and the industry", says Chief Executive Sami Iskander.
The Engineering & Construction division's performance for 2020 hit by the pandemic, which has disrupted project schedules and increased costs. "Furthermore, the decline in oil prices resulted in a contraction in capital spending by clients in the period, resulting in delays in tender awards, the termination of our Dalma contracts and a tighter commercial environment," company says.
Engineering & Production Services, meanwhile, posted a resilient performance, while Integrated Energy Services's year was "largely defined by the sharp fall in commodity prices and completion of the sale of our remaining interests in Mexico."
Decides that dividend payments will remain suspended, meaning no dividend in respect of 2020 after 2019 payout of 12.7 cents per share.
Unveils "refreshed" strategy, focused on three pillars: best-in-class delivery, returning to growth and superior returns.
"This means reshaping our business to rebuild our backlog by capitalising on the recovery in addressable markets, diversifying into new geographies and accelerating our pivot to new energies. In parallel, we will deliver on our ESG commitments and continue to improve our cost-competitiveness. I am confident that we will recover to deliver sustainable value for all our stakeholders over the medium term," says Iskander.
Current stock price: 120.70 pence, down 8% on Tuesday
Year-to-date change: down 13%
By Lucy Heming;Â lucyheming@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Petrofac (PFC)