Most successful year for new awards, with ECOM order intake of US$7.2 billion in 1H 2014; backlog up 35% to stand at record levels of US$20.3 billion at 30 June 2014 (31 December 2013: US$15.0 billion), giving very good revenue visibility for the rest of this year and beyond
ECOM continues to perform in line with expectations; IES making good progress on addressing project performance issues
As previously guided, our revenue and net profit for 2014 is significantly weighted towards the second half of the year, reflecting the phasing of project delivery:
o Revenue of US$2.5 billion (2013: US$2.8 billion)
o EBITDA of US$340 million (2013: US$405 million)
o Net profit of US$136 million (2013: US$243 million)
o Earnings per share (diluted) of 39.80 cents (2013: 70.72 cents)
On track to deliver net profit in the range US$580 million to US$600 million for the full year 2014, in line with previous guidance
Interim dividend maintained at 22.00 cents per share (2013: 22.00 cents)
Net debt of US$1.3bn at 30 June 2014 (December 2013: US$0.7bn); subsequently reduced by US$0.4bn following completion of Petrofac FPSO Holding Limited transaction in August 2014
Ayman Asfari, Petrofac's Group Chief Executivecommented on the interim results:
"In ECOM, we have already had our most successful year for new awards, bid at margins consistent with our medium-term guidance, reflecting ongoing high levels of investment by our customers in our core geographic markets and our strong competitive position. Our pipeline of bidding opportunities remains attractive and we are confident of securing a number of further awards and contract extensions during the second half of the year.
"In IES, we are making good progress on addressing project performance issues and the delivery of key operational milestones. Looking further ahead, we have re-focused our IES business development plans and our innovative venture with First Reserve reinforces the role of IES as an enabler for the Petrofac group, allowing us to concentrate our resources on our core strengths and underlining our commitment to capital discipline."
