Covid’s lingering impact drags down Petrofac revenues 

Covid-19’s challenges for the industry are still being felt as Petrofac reported declining revenue in the first half of 2022 at $1.2bn (£0.98), a drop from the $1.6bn (£1.3bn) in the same period last year.

The energy services company’s net loss was at $14m (£11.4) with EBIT at $2m (£1.6m), a contrast from the $49m (£40m) seen last year.

Petrofac’s businesses took a hit, with revenue down in Engineering & Construction (E&C) as the pandemic led to lower activity in the sector and unfavourable commercial settlements with clients, and down in asset solutions as well.

The company’s Integrated Energy Services had a strong performance as revenue surged to $56m (£46m) from $15m last year. Production increased with the benefit of high oil prices. Petrofac also reduced its emissions.

“Our performance in the first half continues to reflect the COVID-19 related industry challenges, as we work towards completion on many of the projects in the legacy E&C (Engineering & Construction) portfolio,” said Sami Iskander, Petrofac CEO.

“Supported by a strong commodity price environment and an increasing focus on energy security, the outlook for the industry is robust and the work we have done over the past 18 months means that Petrofac enters this important period in a strong competitive position.”

The company is seeking to cut costs and deliver on client backlogs in the second half of the year while securing awards in its E&C business. 

Petrofac is looking to reinstate a dividend policy once the company’s performance has gotten better.