Headlines Good operational and financial performance in 1H 2011 Backlog of US11.4bn at 30 June 2011 (i3% versus 31 December 2010, h66% versus 30 June 2010); maintains our outstanding revenue visibility Engineering & Construction net…
Backlog Backlog continues to give outstanding revenue visibility New projects awarded in Algeria, Iraq and Malaysia contributed to the broad maintenance of Engineering & Construction backlog at US8.7bn in 1H 2011 (Dec 2010: US9.0bn)…
Group reorganisation Organisational restructure will take effect from 1 January 2012 Maroun Semaan appointed President, leading development of major strategic initiatives Divisions Engineering, Construction, Operations &…
Progressing our IES strategy Mexico Magallanes and Santuario blocks, Mexico Selected bidder for two 25 year Production Enhancement Contracts (PEC) for Magallanes and Santuario blocks Current production approximately 14,000 bpd…
Progressing our IES strategy projects update Ticleni field, Romania (PEC) Oil production ahead of budget Well workovers undertaken to improve production Commenced pilot water flood programme; results expected end 2011 Ticleni…
Progressing our IES strategy West Desaru We have signed an MOU to accelerate production from Block PM304 with a third phase of development - West Desaru Aim to achieve first oil by end 2012 by utilising current export facilities and…
Progress on major projects South Yoloten field, Turkmenistan Good progress with construction of the temporary facilities completed and the majority of orders for procurement placed Expect to reach profit recognition threshold in 2H…
Progress on major projects Laggan Tormore gas processing plant, Shetland Islands First lump-sum contract in the UKCS; dynamic project management and continuous engagement at all levels of the client team Leveraging offshore skills to…
Progress on major projects El Merk gas processing facility, Algeria Engineering and procurement now substantially complete, more than 50% of construction completed Around 5,000 workers on-site of whom 90% are Algerian First…
Geographical expansion South-East Asia Indonesia: existing capability Malaysia: deepening strategic relationship JV with Indonesias Inti Karya Persada Worked with PETRONAS since 2004; Tehnik (IKPT) recent awards on Sepat and Berantai…
Geographical expansion recent country entries Currently working on two projects in-country for Shell and BP Iraq Strong bidding pipeline for further opportunities in late 2011 and 2012 Strategic opportunity to develop local…
Income Statement USm 1H 2011 1H 20101 Variance Restated Revenue 2,711.1 2,165.8 25% Operating profit 298.5 290.9 3% Profit before tax 299.6 291.4 3% Income tax expense (53.1) (61.2) Profit for the period 246.5 230.2 7% Profit for the…
Cash flow and gross cash balances Cash position very strong at US1.8bn: Net working capital inflows of US906m due to an increase in advance payments and a reduction in WIP on Engineering & Construction Investing activities include…
IES capital expenditure Approximately US140m deployed on IES projects in 1H 2011; expect the rate of capital deployment to increase in 2H 2011 Continue to envisage gross investment of between US0.5 1.0bn per year Projects are…
Backlog inclusion of Risk Service Contracts Rationale Updated in response to the creation of Integrated Energy Services and the increasing proportion of earnings that will come from Risk Service Contracts Reflects the service nature…
Engineering & Construction Financial performance in 1H 2011 affected by timing of profit recognition: Revenue h17% - higher activity levels particularly on Asab and South Yoloten projects Net profit flat - due to margin dilution from…
Offshore Engineering & Operations Very strong performance in 1H 2011: Net revenue h98%, net profit h703% significant increase in activity levels particularly on the SEPAT development and the FPSO Berantai provision release…
Engineering, Training, Production Solutions Mixed results across the business units: Revenue h20% due to an increase in activity in Engineering Services in support of internal work and strong growth in number of delegates in…
Energy Developments Lower contribution during development phase: Revenue h50% - primarily due to commencement of the Berantai RSC, partially offset by demerger of Don assets in April 2010 Net profit i56% lower contribution from…
Summary and outlook Good operational performance achieved across our portfolio of projects Backlog of US11.4 billion gives outstanding revenue visibility Encouraging progress against our Integrated Energy Services strategy…
Appendices
Appendix 1: Largest current EPC contracts Customer key: Original contract NOC/NOC led company/consortium Joint NOC/IOC company/consortium IOC/IOC led company/consortium value to Petrofac Asab onshore oil field development, Abu Dhabi…
Appendix 2: Effective tax rate Tax charge by segment 1H 2011 2010 reported reported Engineering & Construction 14% 17% Offshore Engineering & Operations 19% 27% Engineering, Training and Production Solutions 7% (4%) Energy…
Appendix 3: Segmental performance Engineering & Construction earned 67% of revenue and 80% of net profit Middle East and Africa: remains a key geographic market for Engineering & Construction CIS & Asia: primarily relates to…
Appendix 4: Employee numbers 14,600 people in 6 key operating centres and 21 offices worldwide EPC headcount includes the engineering offices in Mumbai, Chennai and Delhi, which although reported in ETSPS principally support E&C…
Revenue recognition 28 acceptance Profit recognition certificate Final Project risk Warranty phase acceptance Provisional certificate 100% Mechanical completion Robust Completion systems to facilitate…
Notes EBITDA means earnings before interest, tax, depreciation and amortisation and is calculated as profit from operations before tax and finance costs adjusted to add back charges for depreciation, amortisation and impairment.…
Contact information: Jonathan Low Tess Palmer Head of Investor Relations Investor Relations Officer irpetrofac.com irpetrofac.com 020 7811 4900 020 7811 4900
Loading...
