Petrofac profit tumbles over Laggan-Tormore project

Petrofac, an international service provider to the oil and gas industry, has reported a 2015 net profit of $9 million after Laggan-Tormore North Sea gas project loss, compared to net profit of $581 million in 2014. 

Petrofac’s net profit before accounting for Laggan-Tormore loss was $440 million. Further, the company’s revenues grew 10 percent to $6.8 billion.

Following completion of construction activities, transfer of care and custody of the plant to Petrofac’s client, French oil and gas company Total, the production from the Laggan and Tormore gas and condensate fields, located in 600 meters of water in the West of Shetland area, was started in early February 2016.

Ayman Asfari, Petrofac’s Group Chief Executive commented on the final results: “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.”

Group backlog was up 10% to record year-end levels of $20.7 billion at December 31, 2015, compared to $18.9 billion in 2014.

Asfari added: “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.”

In its annual report on Wednesday, Petrofac said it was targeting further annualized efficiency savings of up to $90 million by the end of 2016, including $25 million from de-layering and centralizing back office services as part of the company’s recently implemented Group reorganization.

Offshore Energy Today Staff

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Posted on February 24, 2016 with tags , .

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