Petrofac Ltd., the U.K. oil and gas services provider with operations in Africa, the Middle East and Asia, said full-year profit rose 57 percent on higher orders.
Net income climbed to $188.7 million, or 54.14 cents a share, from $120.3 million, or 34.87 cents, in 2006, the London- based company said today in an e-mailed statement. Sales gained 31 percent to $2.44 billion.
``We definitely see stronger earnings in 2008,'' Chief Executive Officer Ayman Asfari said in an interview. ``Demand for our services is strong.''
Oil services companies including John Wood Group Plc and Abbot Group Plc are benefiting from soaring crude prices, which have spurred exploration by producers such as Exxon Mobil Corp. and Royal Dutch Shell Plc. Oil traded in New York has risen about 80 percent in the last 12 months.
Petrofac's order portfolio rose 6.4 percent to $4.44 billion as of Dec. 31 from a year ago, Petrofac said. It will pay a final dividend of 11.50 cents per ordinary share, raising the full-year dividend to 16.40 cents a share.
Petrofac fell 17 pence, or 3 percent, to 549 pence as of 8:24 a.m. local time. The shares jumped 37 percent last year.
Drilling Program
The company plans to produce its first natural gas from the Chergui project in Tunisia before the middle of the year. Petrofac plans to continue drilling in offshore Permit PM304 in Malaysia and will also start drilling at the Don deposit in the U.K. part of the North Sea.
``We see a lot of growth in the Middle East'' and central Asia in Kazakhstan, Asfari said.
The seven-week shutdown of the Thistle Alpha platform in the North Sea following a fire on Nov. 25 didn't impact Petrofac's earnings, Asfari said. The company ``addressed very adequately'' notices from the U.K.'s Health and Safety Executive about emergency procedure handling.
Via [Bloomberg]
