Petrofac All Smiles as Demand for Services Stays Strong
Petrofac has issued the following Interim Management Statement for the period July 1, 2008 to October 10, 2008.
As noted in the Interim Results announcement released on August 27, 2008, demand for the group's services remains robust with a continuing positive outlook for new project awards. Trading performance for the year to date has been in line with our expectations and cash balances at the end of September were in excess of US $650 million.
Subsequent to the Interim Results announcement, the Engineering & Construction division announced the establishment of Petrofac Emirates, a joint venture with Mubadala Petroleum Services Company LLC, a wholly owned subsidiary of Mubadala Development Company. Petrofac Emirates will be based in Abu Dhabi and will provide a full range of engineering, design, procurement and construction services for onshore oil & gas, refining and petrochemical projects throughout the United Arab Emirates.
Following the acquisition of Eclipse Production Technology Limited in July, the Operations Services division acquired Caltec Limited, a production technology specialist in late August. These acquisitions complement the division’s well operations management business, SPD Group, acquired in January 2007, and further broaden the division’s capability, which now extends from the management of surface facilities and well operations, to the ability to deliver solutions to enhance and improve production, particularly in mature fields.
The Energy Developments division continues to make good progress with the development of the West Don and Don Southwest fields in the UK North Sea, with modifications to the Northern Producer floating production facility, subsea infrastructure development and the recently commenced drilling programme progressing on budget and on schedule for first oil in the first half of 2009. The Chergui gas plant in Tunisia, which commenced commercial production of gas in early August, is now operating at close to full capacity.
The group's backlog at the end of September was approximately US $4.3 billion (June 30, 2008: US $4.8 billion), comprising approximately US $2.3 billion from the Engineering & Construction division (June 30, 2008: US $2.7 billion) and approximately US $2.0 billion from the Operations Services division (June 30, 2008: US $2.1 billion). The group's financial position has not changed significantly from June 30, 2008, with the group's balance sheet remaining strong.
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