Petrofac Expects Wider Loss for 2022 after Portfolio Review

Muhammed Husain
Wednesday, April 12, 2023

Petrofac Ltd said on Wednesday it expects to report a wider operating loss of about $150 million to $170 million for 2022, after a review of its portfolio of contracts and contractual and commercial issues revealed increased costs. 

The oilfield services provider said it recognized a reduction in its full-year earnings due to incremental project costs and a cautious view of the quantum and timing of recognition of some revenue claims. 

The group also said it recorded significant costs from operational changes at its Thai Oil Clean Fuel project and from activities at its legacy portfolio, primarily on projects that are now substantially completed. 

It now expects to recover about half of these costs this year, and the remainder over 2024 and 2025. Petrofac had previously projected an annual operating loss of about $100 million. 

The company's revised forecast includes an operating loss of about $240 million to $260 million in the engineering and construction (E&C) division, its largest unit, compared with $190 million earlier. The group's net debt has jumped during the year, partly due to unrecovered cost overruns in its E&C projects and a delay in new awards. 

(Reuters - Reporting by Muhammed Husain in Bengaluru; editing by Uttaresh Venkateshwaran)

Categories: Energy People Industry News Activity People & Company News

Related Stories

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Yinson Production Nets DNV Approval for New FPSO Hull Design

Brownfield Output Decline Accelerates, says IEA

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Current News

Sponsored: UAE Breaks Ground on World First Gigascale Renewable Energy Project

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com