Petrofac Order Backlog Rises to $20.5b

Petrofac Order Backlog Rises to $20.5b
Petrofac Order Backlog Rises to $20.5b

Oilfield services provider Petrofac Ltd said strong performance at its engineering and construction division had helped increase its order backlog to $20.5 billion at the end of May.

Petrofac shares rose as much as 11% to 965.5 pence on the London Stock Exchange on Tuesday morning, Worldbulletin reported. The company, however, said it expected pretax costs at its Laggan-Tormore project to increase by about $47.35 million as it began additional completion and pre-commissioning works.

The company has incurred about 140 million pounds in costs on the project so far this year. Order backlog at Petrofac's engineering, construction, operations and maintenance division, which accounted for nearly 80 percent of its revenue last year, grew 12 percent from the end of December.

JP Morgan Cazenove analyst Daniel Butcher said Petrofac's ECOM backlog, which was $17.4 billion at the end of May, had the potential to increase to $20 billion for the first half.

Chief Executive Ayman Asfari said the company stood to secure several contracts in the second half of the year as clients were investing in large projects in its core markets.

The company said it expected its net profit for the year to be weighted towards the second half as several projects were near completion.