(Alliance News) - Petrofac Ltd on Thursday reported a drop in interim revenue due to Covid-19 pandemic effects, as it remains optimistic about future opportunities.
For the six months that ended on June 30, the Jersey-based services provider to the energy industry posted a 23% drop in revenue to GBP1.23 billion from GBP1.60 billion a year earlier.
Business performance earnings before interest and tax plunged to USD2 million from USD49 million.
In its Engineering & Construction division, Petrofac said revenue was down 40% to USD700 million from USD1.1 billion a year earlier in line with guidance. The company said it reflected the "lingering effects" of the pandemic.
Group Chief Executive Sami Iskander said: “Our performance in the first half continues to reflect the Covid-19 related industry challenges, as we work towards completion on many of the projects in the legacy E&C portfolio. Moving into the second half of 2022, a significant increase in bidding activity has put us firmly on the path to grow backlog over the full year."
It expects to reinstate its dividend policy in due course, once the company's performance has improved.
Looking ahead, Petrofac said it remains optimistic about opportunities it is "bidding on will start to be awarded in the second half of the year". It expects free cash flow in the second half of the year to be broadly neutral, adding that its E&C segment has a USD45 billion 18-month pipeline of opportunities.
Shares were down 1.1% at 114.00 pence each on Thursday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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Petrofac (PFC)