Oil and gas facilities provider
Order intake in the six months of $2.2bn (£1.3bn) increased total backlog - orders and the uncompleted portions of lump-sum contracts - to $11.4bn. This provides substantial revenue visibility beyond the year-end, even if backlog is no longer growing at the rate of recent periods. Chief financial officer Keith Roberts expects backlog to remain stable this year as the group looks to consolidate and deliver on projects.
The core engineering and construction division accounted for $1.6bn of the new orders, winning contracts in Algeria, Iraq and Malaysia. The offshore engineering and operations division has also been successful in winning new contracts, including one to provide maintenance services to
The recently structured integrated energy services (IES) division, led by former BP exploration chief Andy Inglis, is an evolution of the energy developments division from which
Prior to these results, Evolution Securities was forecasting full-year pre-tax profit of $649m and EPS of 145¢.
|ORD PRICE:||1,200p||MARKET VALUE:||£4.15bn|
|TOUCH:||1,199-1,200p||12-MONTH HIGH:||1,697p||LOW: 1,045p|
|DIVIDEND YIELD:||2.4%||PE RATIO:||15|
|NET ASSET VALUE:||268¢*||NET CASH:||$1.77bn|
|Half-year to 30 Jun||Turnover ($bn)||Pre-tax profit ($m)||Earnings per share (¢)||Dividend per share (¢)|
Ex-div: 21 Sep
Payment: 21 Oct
*Includes intangible assets of $200m, or 58¢ a share
Although the timing of major projects is likely to lower second-half profits, the backlog provides a high degree of confidence over core engineering and consultancy earnings while the IES division builds a growing contribution. Strip out the cash pile and the shares trade on 10 times forecast earnings, which is undemanding given Petrofac's potential. Good value.