Offshore energy services provider Petrofac has reported a net loss of $78m in its first half year results for 2020.
The engineering and construction unit reported a 28% reduction in revenue down to $1.6bn, caused mainly by Covid-19 related project delays, Petrofac said.
Net profit in the division fell 76% to $35m.
Petrofac group chief executive Ayman Asfari said the results reflect the “deterioration in market conditions triggered by the Covid-19 pandemic and subsequent decline in oil prices”.
Asfari said: “In response, we are doing everything in our control to protect both the health and well-being of our people, suppliers and communities, as well as the long-term health of the business.
“These swift and decisive actions are structurally reducing costs, conserving cash and maintaining our competitiveness. At the same time, we have preserved core capability whilst continuing to invest in digitalisation and client relationships.”
Petrofac has also set net new targets in order to help it achieve net zero emissions by 2030.
The company aims to reduce its Scope 1 and 2 emissions to net zero by 2030.
Scope 1 covers direct emissions, from production processes, for example, and Scope 2 covers indirect emissions, from energy purchased, for example.
At a divisional level, Petrofac said it expects engineering and production services to reduce Scope 1 and 2 emissions to net zero by 2025, while engineering and construction and integrated energy services will achieve the same by 2030.
The company said it will cut emissions by implementing energy efficiencies and low carbon strategies on sites and operations, optimising operations and methods of construction and advancing flare and venting reduction and carbon abatement plans.
Other measures include adopting new technologies, such as “phasing in hybrid and electric vehicles on site, decarbonising heating and cooling systems by switching to renewable electricity where available and fitting smart building technology in offices to maximise energy efficiency”.
Petrofac said it will also support clients, partners and suppliers in their lower carbon ambitions, enable “flexible and agile” working practices, continue to embed emission reductions targets in management scorecards and incentivise its staff to be “advocates for net zero”.
Asfari said: “Our vision is to be the preferred services partner to the energy industry, trusted to deliver to high quality and standards. Our sustainability agenda is key to this aspiration and the environmental and diversity targets we are announcing today represent a significant step forward.
“Our Net Zero target supports the principles of the Paris Agreement, the UK government’s Net Zero goal, and is aligned with our clients’ own ambitions as the sector moves to a net zero future.
The company has also set a 30% gender diversity target by 2030.