Business | Oil & Gas
Petrofac upbeat about long-term oil demand
Long-term demand at Petrofac remains "very strong", with full-year financial results seen at the top end of market expectations, the British oil and gas services firm announced yesterday.
- Reuters
- Published: 23:39 August 27, 2008
London: Long-term demand at Petrofac remains "very strong", with full-year financial results seen at the top end of market expectations, the British oil and gas services firm announced yesterday.
Petrofac earlier reported better-than-expected net profit for the first half to end-June that jumped 57 per cent to $121.2 million from a year ago, helped by strong demand at its main engineering and construction unit.
Petrofac, whose shares have gained 43 per cent in 12 months, is expected to make a net profit of between $228 million and $262 million in its full year.
Yesterday, Petrofac's shares rose 1.5 per cent to 602 pence following the results announcement, to value the firm at about £2.08 billion ($3.84 billion).
Analysts say Petrofac is more susceptible to weak oil price sentiment given its direct industry exposure, but stands to benefit on any turn in that sentiment as its projects begin delivering cashflow.
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