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Shetland pony for Petrofac

Petrofac has been forced to take another large impairment on the Laggan-Tormore development.
April 22, 2015

Things have gone from bad to worse for Petrofac (PFC). The oil services heavyweight has delivered its third profits warning in a year, indicating that it would take a charge of £130m on the huge gas plant it is building on the Shetland Islands for France's Total. This latest impairment comes on the heels of an earlier hit on the same development - known as Laggan-Tormore - bringing the total charge against the project to £284m.

IC TIP: Hold at 860p

The extra costs have been blamed on harsh weather and industrial strife. But Petrofac has had to contend with these one-off issues at a time when oil industry capital budgets are being squeezed by the Brent crude price slide.