Petrofac secures major contract and predicts revenue in line with expectations

  • Petrofac expects to report full-year revenue of $2.5 billion
  • Expects a loss before interests and taxes of around $180 million
  • Secured a $1.4 billion contract with TenneT
  • Net debt at year-end expected to be slightly higher than $584 million
  • Order backlog for 2024 is around $8 billion

Petrofac, the London-listed provider of services to the energy industry, has announced that it expects to report full-year revenue of $2.5 billion, in line with its guidance. However, it also anticipates a loss before interests and taxes of approximately $180 million due to one-off write-downs. These write-downs include contract settlements of around $110 million and a bad debt provision of $12 million for a client going into administration. Despite this, Petrofac enters 2024 with a strong order backlog of around $8 billion in both traditional and renewable energy sectors. Additionally, the company has secured a $1.4 billion contract with TenneT, as part of a multi-year deal to expand offshore wind capacity in the North Sea.

Public Companies: Petrofac (N/A), TenneT (N/A)
Private Companies:
Key People:

Factuality Level: 8
Justification: The article provides specific information about Petrofac’s expected full-year revenue, earnings loss, and contract with TenneT. It also mentions the reasons for the earnings loss, including one-off write-downs and a bad debt provision. The article includes details about Petrofac’s order backlog and the contract with TenneT. Overall, the information provided seems factual and supported by specific figures and statements from the company.

Noise Level: 7
Justification: The article provides information on Petrofac’s expected full-year revenue and earnings loss, as well as details about a $1.4 billion contract with TenneT. However, it lacks in-depth analysis, scientific rigor, and actionable insights. It stays on topic and supports its claims with specific figures and details.

Financial Relevance: Yes
Financial Markets Impacted: Petrofac, energy industry

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Petrofac’s expected full-year revenue and earnings loss. It also mentions a $1.4 billion contract secured by Petrofac. However, there is no mention of any extreme event.

Reported publicly: www.marketwatch.com