Petrofac’s engineering and construction (E&C) business reported $62m in net profit in 2020, compared to $278m in 2019, in its financial results for 2020.
Earnings before interest, tax, depreciation and amortisation for the E&C business was $113m in 2020, compared with $412m in 2019.
The E&C business reported $700m of new order intake, reflecting the decline in industry awards.
The most significant new award in E&C was the Seagreen offshore wind project in Scotland with SSE for the EPC of the HVAC onshore and offshore substations.
Revenue fell 31% to $3.1bn, driven by lower activity and variation orders, the company said, while net profit margin was down 4.2% to 2%, “largely reflecting COVID-19 related cost increases, a change in project mix and the recognition of contract losses, partially mitigated by cost savings”.
with a return to pre-2020 capex spend levels by 2023.
“We will seek to capitalise on this recovery in our core addressable markets, whilst also targeting growth in selective new geographies and accelerating our transition to new energies” stated the company.
To support this ambition, the group has a diverse tendering pipeline of around $20bn of opportunities scheduled for award by the end of 2021 and$34bn of opportunities due for award in 2022.
Petrofac said it is targeting “significant growth” in new energy markets, leveraging the “sophisticated and transferable skillset we have developed in oil and gas, and building on the success we have had to date in new energies markets, such as offshore wind”.