Petrofac shares dipped 0.3% to 114.8p in late afternoon trading on Thursday after the energy group reported a 23% HY1 2022 revenue fall to $1.2 billion against $1.6 billion the last year.
The company highlighted 40% dive in its Engineering and Construction sector to $700 million compared to $1.1 billion in HY1 2021, linked to lingering effects from the Covid-19 pandemic.
Petrofac confirmed a EBIT drop to $2 million from $49 million, along with a reported net loss of $14 million.
The firm reported a net debt of $341 million and liquidity of $511 million.
“Our performance in the first half continues to reflect the Covid-19 related industry challenges, as we work towards completion on many of the projects in the legacy E&C portfolio,” said Petrofac CEO Sami Iskander.
“Moving into the second half of 2022, a significant increase in bidding activity has put us firmly on the path to grow backlog over the full year.”
XTB chief market analyst Walid Koudmani added: “While Petrofac continues to be impacted by the lingering effects of the pandemic, the company managed to post a mixed H1 financial performance which was in line with guidance and showed good momentum.”
“Despite this, the company reported net loss of US$(14) million but expects free cash flow in the second half to be broadly neutral as market conditions are likely to be favourable thanks to rising commodity prices and the emphasis on energy security.”
Petrofac declined to issue a dividend in HY1, and said it would reinstate its payments once the company was in a stronger financial position.
