However much it tried, Petrofac (PFC) could not shake the enormous impact of Laggan-Tormore from its full year results. Delays and issues with the Shetlands gas processing plant - which Petrofac has handled for France's Total (Fr:FP) - led to a post-tax loss of $431m (£310m). With the original Laggan contract valued at less than $800m to Petrofac, the project - now mercifully nearing completion - has been disastrous.
Even without that hit, the oil services group was again forced to absorb some of its clients' pain through $330m-worth of post-tax write-downs and impairments in the integrated energy services division. Industry-wide woes have nonetheless benefited the engineering and consulting segment, which boosted net profit by 52 per cent to $50m in the period.
Another source of relief came from an improvement in the net debt position on the summer, thanks largely to strong cash collection in the second half of the year. This, together with a 10 per cent increase in project orders, caused investors to push the shares higher on these results.
Analysts at Canaccord Genuity expect adjusted earnings per share of 142¢ this financial year, rising to 151¢ in 2017.
PETROFAC (PFC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 794p | MARKET VALUE: | £2.7bn | |
| TOUCH: | 792.5-794p | 12-MONTH HIGH: | 1,075p | LOW: 651p |
| DIVIDEND YIELD: | 5.9% | PE RATIO: | na | |
| NET ASSET VALUE: | 356¢ | NET DEBT: | 56% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 5.80 | 681 | 159 | 54.6 |
| 2012 | 6.20 | 765 | 186 | 64.0 |
| 2013 | 6.30 | 789 | 191 | 65.8 |
| 2014 | 6.24 | 171 | 35.1 | 65.8 |
| 2015 | 6.84 | -335 | -103 | 65.8 |
| % change | +10 | - | - | - |
Ex-div: 21 Apr Payment: 27 May £1=$1.40 | ||||
