(Alliance News) - Petrofac Ltd on Thursday said it swung to loss in the first half, as activity levels fell.
The London-headquartered energy infrastructure company with core markets in the Middle East and North Africa said it swung to a pretax loss of USD160 million in the six months to June 30, from profit of USD34 million a year before.
This resulted from "low levels of activity" in its Engineering & Construction division, the largest revenue contributor.
Revenue dropped by 3.2% to USD1.21 billion from USD1.24 billion
Looking ahead, Petrofac cited "robust" new awards in E&C, with a total pipeline scheduled for award by December of next year worth USD44 billion, while its Assets Solutions division is set to receive USD16 billion.
The company also expects "broadly neutral" cash flow in the second half of 2023, and a "positive tailwind" from cash advances relating to the new E&C awards won in the last six months.
Chief Executive Officer Tareq Kawash said: "As I look ahead to the second half, my focus is on continuing to close out the legacy portfolio, improving our financial resilience and strengthening the balance sheet through the commercial settlements and advance payments due in the period, whilst delivering exemplary execution and selectively bidding to grow our high-quality backlog."
Shares in Petrofac were down 3.7% at 84.25 pence each in London on Thursday midday.
By Sabrina Penty, Alliance News reporter
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Petrofac (PFC)