Petrofac said it will achieve its medium-term performance ambition, during an update on current trading at its annual general meeting (AGM) today.
The company said the outlook for order intake in its E&C business “remains robust with a diverse and active bidding pipeline”.
This includes achieving group revenue of $4-5bn, including $1bn from new energies, with a “sector leading” 6-8% EBIT margin and a return to a net cash position.
Delivery of these medium-term objectives will “create significant value for all Petrofac stakeholders,” stated the company.
In an update to shareholders, group chief executive Sami Iskander will say: “I am pleased with the strategic progress we made in 2021 to establish a strong platform and I want to thank our shareholders, clients, and other stakeholders for their continued support as we position the business to capitalise on the multi-year upcycle ahead of us, underpinned by structural tailwinds from high energy prices.
“We are experiencing some near-term headwinds as we complete a number of EPC projects in our relatively small, mature portfolio, which will impact E&C’s 2022 performance.
“However, the outlook for order intake in E&C remains robust with a diverse and active bidding pipeline.”
In new energy services, the “strong momentum” in 2021 has continued to increase in 2022 with a series of early-stage awards. Petrofac said it is making material progress with developing further strategic alliances with technology providers.
Petrofac’s pre-close trading statement on its first half trading will be published on 28 June 2022.