Energy services provider Petrofac has suffered during the pandemic and a trading statement released today suggests their woes may persist for the foreseeable future.
The company said it expects revenue to be $3 billion and profit similar to last year and market expectations. Petfrofac recorded at $189 million loss in 2020.
Revenue of $3 billion would be less than the $4 billion recorded in 2020 and significantly less than 2019’s $5.5 billion revenue.
“Petrofac’s expecting full year revenue to come in significantly below last year’s as low order intake and coronavirus-related troubles continued to weigh on the business. While the Securities and Fraud Office investigation into bribery claims has finally been settled, the group will be feeling the impact of the ordeal for some time to come,” said Laura Hoy, Equity Analyst at Hargreaves Lansdown.
“Not only was it dealt a £77m pound fine, but the group was unable to do business in some of the most lucrative oil and gas markets which has had a significant impact on this year’s results.”
“Today’s update suggests the group’s hit the ground running as it rebuilds its order backlog under new CEO Sami Iskander. But there’s a long road ahead and covid-related headwinds aren’t helping matters. With revenue and profits expected to remain significantly below 2019 levels for the foreseeable.”
Sami Iskander, Petrofac’s Group Chief Executive, commented:
“In 2021 Petrofac has taken an important step forward, closing out the SFO investigation and embedding a strategy focused on future growth. During this period we have continued to deliver projects and operations safely for our clients worldwide, despite the ongoing challenges of the Covid-19 pandemic which continue to impact our current E&C portfolio.”
Having previously been included in the FTSE 100, Petrofac shares are a shadow of their former selves, trading at 111p on Thursday valuing the company at just £577m. Petrofac shares traded above 1,750p in 2012.