LogIn LogOut

Petrofac Expects Wider Loss for 2022 after Portfolio Review

April 12, 2023

©Casimiro/AdobeStock
©Casimiro/AdobeStock

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)



Current News

CCS, Hydrogen Challenges a Focus at SPE Offshore Europe 2023

CCS, Hydrogen Challenges a Focus at SPE Offshore Europe 2023

Consortium Proposes 2.5 GW Offshore Wind Farm in Bass Strait, Australia

Consortium Proposes 2.5 GW Offshore Wind Farm in Bass Strait, Australia

Baron Oil Gets Six-Month Extension for Chuditch PSC Offshore Timor-Leste

Baron Oil Gets Six-Month Extension for Chuditch PSC Offshore Timor-Leste

QatarEnergy in 15-Year LNG Supply Deal with Bangladesh

QatarEnergy in 15-Year LNG Supply Deal with Bangladesh

Vestigo Petroleum Books Jack-up Drilling Rig for 5-Well Program

Vestigo Petroleum Books Jack-up Drilling Rig for 5-Well Program

Valeura Extends FPSO Charter and Maintenance Services Contract for Jasmine Oil Field

Valeura Extends FPSO Charter and Maintenance Services Contract for Jasmine Oil Field

Cyan, Taya in Offshore Wind Vessel Collab in Taiwan

Cyan, Taya in Offshore Wind Vessel Collab in Taiwan
photo

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