Petrofac saw its share price fall 9.2% to 107.4p following a reported $195 million net loss and 25% decline in revenue to $3.1 billion in 2021.
The oil company’s underlying cash profits tumbled to $104 million against $211 million in 2021 as a result of climbing costs and a double-digit fall in Energy Services and its Energy and Construction sectors.
Petrofac suffered further losses due to asset sales, unplanned production disruption and Covid-19-related hurdles.
The firm warned shareholders to expect a “subdued” outlook in the near term.
Analysts commented on the market’s reaction to Petrofac’s delayed recovery.
“The market was understandably disappointed by management’s forecast for subdued margins and tepid revenue growth,” said Hargreaves Lansdown equity analyst Laura Hoy.
“The group’s recovery appears to be pushed back another year and given the ongoing volatility sooner would have been better.”
However, there might be cause for slight optimism for Petrofac following the close of its Serious Fraud Office (SFO) investigation.
“A recovery could be in the works,” said Hoy.
“The group’s interests in Russia have taken 0.6% of potential projects off the table, but the conclusion of the SFO investigation means it’s no longer barred from trading in some of the most lucrative markets in the world.”
“The group can bid on $37bn worth of projects which will be awarded by the end of 2022 and with an impressive win rate so far, we could see a marked increase in next year’s order book.”