Petrofac Release Final results for the year ended 31 December 2015

Petrofac Release Final results for the year ended 31 December 2015

Revenue up 10% to US$6.8 billion (2014: US$6.2 billion)
EBITDA(1)(2) of US$792 million before Laggan-Tormore loss; EBITDA of US$312 million (2014: US$935 million) after Laggan-Tormore loss
Net profit(2)(3) of US$440 million before Laggan-Tormore loss, in line with market expectations(4); net profit of US$9 million (2014: US$581 million) after Laggan-Tormore loss

Exceptional items and certain re-measurements of US$358 million (post-tax), primarily due to lower oil and gas prices; net book value of IES project portfolio stands at US$1.7 billion(5)
Group backlog(6) up 10% to record year-end levels of US$20.7 billion at 31 December 2015 (2014: US$18.9 billion), giving excellent revenue visibility for 2016 and beyond, with embedded margins consistent with guidance
Net debt decreased over 2H 2015 to stand at US$686 million at 31 December 2015 (2014: US$733 million), reflecting strong cash collection during Q4 2015
Expect to deliver net profit in 2016 consistent with our previous guidance
Full year dividend maintained at 65.80 cents per share (2014: 65.80 cents), reflecting confidence in the Group’s future prospects
Maintained focus on operational excellence and cost efficiencies with annual savings of US$80 million delivered in 2015; targeting further annualised efficiency savings of up to US$90 million by the end of 2016, including US$25 million from de-layering and centralising back office services as part of our recently implemented Group reorganisation
Ayman Asfari, Petrofac’s Group Chief Executive commented on the final results:

“Petrofac’s core proposition is based on strong project execution, clear geographic focus, a disciplined approach to bidding and a sustainable, cost-effective structure. These strengths have positioned Petrofac well in a very challenging period for the oil and gas industry.
“Our results for 2015 were adversely affected by the Laggan-Tormore project on Shetland. However, we faced up to the exceptional challenges we encountered and honoured our commitment to our client. With the plant now successfully operational, these issues are finally behind us.
“We enter 2016 with a renewed focus on our core strengths. The Group’s backlog stands at record year end levels, giving us excellent revenue visibility for 2016 and beyond. We remain committed to reducing the capital-intensity of the business and managing the IES portfolio to maximise value. Our balance sheet remains robust, our working capital position has improved and we remain dedicated to delivering shareholder value.”

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