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Press Release
4 February 2021
PETROFAC SECURES PETROLEUM DEVELOPMENT OMAN CONTRACTS
Petrofac has been awarded two contracts, together worth around US$300 million through Petroleum Development Oman (PDO).
The first is a direct EPC contract for PDO's Marmul Main Production Station (MMPS) - Gas Compression project. The scope of work for the 30-month, lump-sum turnkey contract includes engineering, procurement, construction, commissioning, start-up and initial operational support.
Located at Marmul in the South of Oman, approximately 800 kilometres from Muscat, the purpose of the new facility is to eliminate permanent flaring and manage associated gas. The work includes gas recovery and booster compressors, gas sweetening, dehydration and other units, utility systems and modification of existing facilities.
The second is a project delivery contract with Petrofac's partner and main PDO contract holder Arabian Industries Projects LLC, for selected PDO concession areas in the North of Oman. The scope of this seven-year contract is for provision of reimbursable engineering services, integrated project support and management services, and has an option to extend for three years.
In line with the main objectives of the integrated project services part of this contract, Petrofac will ensure the effective management, control, execution and documentation of changes and additions to production facilities through specific technical studies related to concept development, development of front-end engineering design (FEED) and detailed design.
Elie Lahoud, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a significant track record in Oman and PDO are a longstanding client. We look forward to building on our strong relationship through these latest contract awards. Both will be delivered by our teams in the Sultanate, with the focus on safety, maximising local and sustainable delivery, and generating In-Country Value."
Petrofac has been serving Oman's energy industries for more than 30 years and during this time has:
Established a multi discipline engineering and project execution office in Muscat Invested US$30 million in a state-of-the-art technical training centre with its partner Takatuf Petrofac Oman (TPO) Developed a highly capable workforce, with over 30% Omanisation in the Sultanate Recorded multi-billion-dollar ICV contribution to Oman's economy in respect of the purchase of Omani goods and services
46 billion dollars in pipeline bidding ? Does this include bidding in Iraq and Saudi ? Will PFC be allowed to work in Those 2 countries if convicted or not convicted and will these 2 countries accept ? 1.4 billion $ project winning in 2020 is marginally less than previous years. PFC has to secure a good deal of projects in 2021 for the share price to move up. As it is now , they are certainly shrinking heavily.
Petrofac Limited: Statement on UK Serious Fraud Office announcement
Petrofac Limited ( PFC)
15-Jan-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
The Serious Fraud Office has announced that a former employee of a Petrofac subsidiary has admitted additional charges under the UK Bribery Act 2010. These charges relate to three historic contract awards in the UAE in 2013 and 2014.
Petrofac confirms that no charges have been brought against any Group company or any other officers or employees. A small number of former Petrofac employees are alleged to have acted together with the individual concerned, although none have been charged. No current Board member of Petrofac Limited is alleged to have been involved.
Petrofac's management is committed to operating at the highest standards of ethical business practice. Petrofac continues to engage with the SFO and will respond to any further developments as appropriate.
ENDS
Petrofac joint venture secures EPCC contract in Kazakhstan with NCOC
09/07/2020 12:44 (UTC)
Dear Subscriber,
We have published the following press release:
Petrofac joint venture secures EPCC contract in Kazakhstan with NCOC
Petrofac’s Engineering & Production Services (EPS) division, in joint venture with Isker, a Kazakhstan company, has secured an Engineering, Procurement, Construction, Pre-commissioning and Commissioning (EPCC) contract worth approximately US$135 million for New Water Treating Facilities for North Caspian Operating Company (NCOC) in Atyrau, Kazakhstan.
You can find the full release here.
PETROFAC LIMITED TRADING UPDATE
Petrofac issues the following pre-close update on trading ahead of the announcement of its half year results on 11 August 2020, and on the swift and decisive action the Company is taking to respond to the COVID-19 pandemic and sharp fall in oil prices.
· Continuing to safely deliver our projects and operations worldwide
· On track to deliver US$125 million of cost savings in 2020 and up to US$200 million in 2021
· Trading and awards materially impacted by COVID-19 and the sharp fall in oil and gas prices
· New order intake (1) of US$1.0 billion in the year to date
· Net debt (2) of c.US$139 million at 31 May 2020
Ayman Asfari, Petrofac's Group Chief Executive, commented:
"The health and well-being of our people, suppliers and our communities continues to be our top priority. I want to personally thank all of our employees for their hard work and dedication in enabling us to deliver safely for our clients in the most challenging market conditions. Nevertheless, despite all of our efforts, the COVID-19 pandemic and sharp fall in oil prices have materially impacted financial performance and new orders in the first half of the year.
"In these unprecedented times, we are doing everything within our control to protect the long-term health of the business. We have taken swift, decisive action to structurally reduce costs, preserve cash and maintain our competitiveness. In doing so, we have preserved core capability whilst continuing to invest in digitalisation and our client relationships. Looking ahead, it is unclear how long market conditions will continue to disrupt business activity and delay awards. Notwithstanding this, we have a tendering pipeline of US$48 billion of opportunities scheduled for award by the end of 2021 and an order book that gives us good near-term revenue visibility.
"Over the last three years we have transitioned Petrofac back into a more resilient, capital light business and strengthened the balance sheet. We have also grown our position in gas, clean fuels, renewables and carbon capture. This strategy, combined with the accelerated and structural reduction of our cost base and continued investment in capability, best positions Petrofac to weather the current storm and emerge stronger as markets recover."
Engineering & Construction (E&C)
E&C financial performance for the first six months of 2020 has been significantly impacted by the deterioration in market conditions. First half revenues are expected to be around US$1.6 billion, driven by COVID-19 related project delays. Furthermore, we expect first half E&C business performance net margins to be between 2.00% and 2.25% largely reflecting COVID-19 related costs, project mix and commercial settlement of the Jazan project at completion. Excluding this non-recurring settlement, the underlying impact of current headwinds on E&C margins in the period was c.1% due