Petrofac says trading is in-line with expectations, warns on outlook

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Petrofac Limited (LON:PFC) told investors it is trading in line with expectations for 2020, in a difficult environment.


It said that new order intake amounted to US$1.4bn in the year to date, versus … , reflecting ‘industry dynamics’.


Liquidity, as of November 30, stood at US$1bn and it said that it is taking additional measures to increase 2021 cost saving target to US$250mln.


In London, Petrofac shares were down 5.85p or 3.38% changing hands at 167.05p each.


“The COVID-19 pandemic and collapse in oil prices have had a material impact on our industry in 2020,” said Ayman Asfari, chief executive.


Asfari highlighted that decisive action was taken earlier in the year to protect Petrofac’s balance sheet, liquidity and the long-term financial health.


He added that trading is line with expectations but cautioned over the company’s outlook.


“Of course, the near-term economic outlook remains unclear,” Asfari said.


“Clients are delaying awards and adopting tough commercial positions. In this environment, our strategic priorities are clear.


“We are focused on conserving cash, cutting costs and rebuilding backlog, while delivering operational excellence.”


Asfari steps down from his position the coming weeks, handing over to Sami Iskander on 1st January.


Iskander will be at the helm when Petrofac reports its full year’s results for 2020, on February 24 2021.

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