 shares increased over 2.25 percent in early trade despite the contractor reporting a net loss of $17 million for the first half of 2018. ){kind=link}
Petrofac (LON:PFC) shares increased over 2.25 percent in early trade despite the contractor reporting a net loss of $17 million for the first half of 2018.
Despite profit dropping from $70 million for the same period a year earlier, investors were cheered at the secured $600 million deal to provide services at a major gas project in Algeria.
“We have reported a good set of first-half results that reflect strong execution and excellent progress delivering our strategy,” said Ayman Asfari, Petrofac’s Group Chief Executive.
“We remain focused on our core and delivering organic growth as the market recovers. The Group has secured $3.3 billion of new orders in both established and adjacent markets year to date, and is well placed on several bids due for award before the end of the year.”
“Our focus on operational excellence is reflected in improved margins and continued good progress across our project portfolio in the first half. Furthermore, we are well positioned for the second half with good revenue visibility, a strong competitive position and healthy liquidity,” Asfari said.
“The Group is also making significant progress reducing capital intensity, signing agreements to sell the JSD6000 installation vessel, our interests in the Chergui gas concession and Greater Stella Area development, as well as a 49 percent interest in our Mexican operations. These transactions will increase our focus on our core and strengthen our balance sheet,” he added.
The new deal will bring the group’s pipeline of new contract orders to $3.3 billion.
“The reason for positive market reaction is simple. Most of the loss can be attributed to exceptional impairment charges of £207 million related to the sale of the JSD 6000 deep-water installation ship in April,” said Artjom Hatsaturjants, of Accendo Markets.
Shares in the group are up 0.64 percent at 664,20 (1411GMT).