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Petrofac Profit Up, Says Confident Of Future, Hikes Dividend

2/27/2013 4:09 AM ET

Oil and gas services provider Petrofac Ltd. (PFC.L,POFCY.PK,POFCF.PK) reported Wednesday a 17.2% increase in fiscal 2012 profit as revenues were boosted by improved performance in all four reporting segments. The company hiked its dividend, and said it is confident in its prospects for the coming year and beyond.

However, Petrofac shares are losing 43 pence or 2.7 percent in London, and are currently trading at 1554 pence.

Chief Executive Ayman Asfari said, "We have delivered another year of strong financial results and good operational performance... We are expanding in new markets, such as Mexico, where we now have four long-term contracts."

In its fiscal year 2012, profit attributable to shareholders increased to $632 million from $540 million in the prior year. Earnings per share grew 17 percent to 183.88 cents from 157.13 cents last year.

Revenue for the year increased 9 percent to $6.324 billion from $5.80 billion last year.

Majority of the revenues were from Onshore Engineering & Construction, which grew 5.1 percent in the year reflecting an increase in activity levels. The strongest growth was in Integrated Energy Services, reflecting significant progress on the Berantai Risk Service Contract and the commencement of the Magallanes and Santuario Production Enhancement Contracts in Mexico.

The company noted that around 70 percent of Offshore Projects & Operations' revenue was generated in the UK.

Earnings before interest, tax, depreciation, amortisation or EBITDA, before impairment, climbed 16.9 percent, representing an EBITDA margin of 14 percent, an increase from the prior year's 13.1 percent.

The company's backlog increased 9 percent to $11.8 billion as of December 31, due to new projects in Integrated Energy Services and Offshore Projects & Operations more than offsetting a reduction in Onshore Engineering & Construction backlog.

Further, Petrofac said its Board proposed a final dividend of 43 cents per share or 28.40 pence for the year 2012, higher than last year's 37.20 cents. This results in full-year dividend of 64 cents per share, 17 percent higher than last year.

Looking ahead, the company said it is confident in prospects for the coming year and beyond. For 2013, the company expects to deliver good growth in net profit, and remain on target to more than double its recurring 2010 Group earnings by 2015.

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by RTT Staff Writer

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