Boosted by new contract wins and continued good levels of bidding activity, oil and gas facilities group Petrofac is increasingly confident it will deliver full-year earnings growth of at least 20 per cent. Customers seeking cost efficiencies by re-tendering contracts are creating growth opportunities, even though this sometimes results in some of Petrofac's current contracts being re-tendered.
And the group is seeing early signs that higher oil prices are starting to encourage the return of more discretionary spending, although backlog - contracted work in progress - stood at $8.5bn (£5.1bn) at the end of September, up only slightly on the $8.4bn at 30 June 2009.
In oil production, Petrofac has commenced water injection at West Don and will soon start injecting water into Don Southwest. Total production this year is expected to be over 3m barrels.
What we said:
When: 31/07/09
Price: 775p
