Petrofac 2014 Profit Falls; Enters Into Alliance With McDermott For Surf Sector

(RTTNews) - Oil and gas services provider Petrofac Ltd. (POFCF.PK, POFCY.PK, PFC.L) reported that its profit for the fiscal year 2014 attributable to shareholders fell to $120 million from the prior year's $650 million, mainly due to exceptional items and certain re-measurements in relation to the Integrated Energy Services portfolio. Earnings per share after exceptional items and certain re-measurements was 34.81 cents per share down from 189.10 cents in the prior year.

Excluding exceptional items and certain re-measurements, reported profit for the year attributable to shareholders was lower at US$581 million , compared to US$650 million last year, predominantly due to lower net profit from Onshore Engineering & Construction and higher net corporate and other costs. Earnings per share before exceptional items and certain re-measurements was 168.99 cents per share compared to 189.10 cents in the previous year.

Pre-tax profit was $171 million, down from $789 million in the prior year.

Group revenue was marginally lower at $6.241 billion compared to $6.329 billion last year, with good growth in Offshore Projects & Operations and Engineering & Consulting Services more than offset by lower revenue from Onshore Engineering & Construction and Integrated Energy Services.

The Company proposes a final dividend of 43.80 cents per share for the year ended 31 December 2014 (2013: 43.80 cents), which, if approved, will be paid to shareholders on 22 May 2015 provided they are on the register on 17 April 2015. Together with the interim dividend of 22.00 cents per share (2013: 22.00 cents), this gives a total dividend for the year of 65.80 cents per share (2013: 65.80 cents).

Separately, Petrofac said that it has entered into a Memorandum of Understanding (MoU) with offshore engineering, procurement, construction and installation (EPCI) company McDermott International, Inc. (MDR) to form a strategic marketing alliance.

Under the terms of the five year Alliance, the two companies will jointly pursue opportunities in the deepwater subsea, umbilicals, risers and flowlines (SURF) sector. The aim is to develop a first-class SURF market position targeting EPCI projects in the US Gulf of Mexico, Mexico, West Africa, Brazil, Mediterranean and North Sea.