Petrofac Release Final Results for the Year Ended 31 December 2014
Revenue of US$6.2 billion (2013: US$6.3 billion)
EBITDA(1)(3) of US$935 million (2013: US$1,031 million)
Net profit(2)(3) of US$581 million (2013: US$650 million), consistent with our previous guidance
Earnings per share (diluted)(3) of 168.99 cents (2013: 189.10 cents)
Full year dividend maintained at 65.80 cents per share (2013: 65.80 cents); final dividend of 43.80 cents per share (2013: 43.80 cents)
Backlog(4) up 26% to record year-end levels of US$18.9 billion at 31 December 2014 (2013: US$15.0 billion), which together with US$3.5 billion of order intake in the year to date, gives us excellent revenue visibility for 2015 and beyond
Net debt position of US$0.7 billion at 31 December 2014 (2013: US$0.7 billion) reflecting success in closing a number of commercial settlements
Delivered overhead and operating cost savings across the Group of US$170 million in 2014 and targeting further cost savings in 2015 to help us maintain our competitive position
Exceptional items and certain re-measurements in relation to IES portfolio of US$461 million, predominantly due to Ticleni, Greater Stella Area, and the lower oil price environment; net book value of IES project portfolio stands at US$1.8 billion(5)
Ayman Asfari, Petrofac’s Group Chief Executive commented on the final results:
“Having taken robust action to address the challenges we have faced on the Ticleni, Greater Stella Area and Laggan-Tormore projects, Petrofac enters 2015 in a much stronger position.
“Engineering, Construction, Operations & Maintenance (ECOM) has achieved a record backlog and Petrofac remains a leader in this market with a strong track record, longstanding client relationships and a competitive cost structure. Notwithstanding the current lower oil price environment, we continue to see an attractive pipeline of bidding opportunities in the year ahead, reflecting Petrofac’s core geographies and client base.
“Integrated Energy Services (IES) has a renewed focus on the core competencies of the Group. Our priority is to generate value from the existing project portfolio and we have made a clear commitment to reduce the capital intensity of this business.
“We are committed to delivering value for our clients and our shareholders and we are well positioned to meet the challenges presented by the lower oil price. We remain on course to deliver net profit in 2015 in line with our previous guidance(6).”
Full Release: Final Results for the Year Ended 31 December 2014