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Petrofac Ltd on Wednesday reported a widened annual loss though said it should be permitted to resume dividends from next year.
Petrofac posted a net loss of $195.0 million in 2021, expanded from $192.0 million in 2020.
The net losses of 2021 and 2020 were caused by separately disclosed items and certain re-measurements of $230.0 million and $242.0 million respectively, the company said. Petrofac noted the payment of a $106 million penalty imposed by the UK courts in connection with the conclusion of the Serious Fraud Office investigation.
The London-based oilfield services provider saw its 2021 revenue fall to $3.06 billion from $4.08 billion. But positively, Petrofac explained it achieved targeted cost savings of $250.0 million.
In April 2020, the company suspended the payment of the final dividend in response to the Covid-19 pandemic and a fall in oil prices. Under the terms of new debt facilities, the company will be permitted to pay dividends from January 2023, subject to the satisfaction of some covenant tests.
‘Looking forward, we are focused on securing the backlog that will deliver profitable growth whilst retaining a strict approach to bidding discipline.
‘While clients continue to prioritise cash preservation over new investments, we expect the increasingly supportive energy price environment to improve the outlook for awards as the year progresses,’ Chief Executive Sami Iskander said.
Margins and revenue will ‘inevitably’ remain subdued in the near term, the firm said, but it is aiming for a medium-term target of $4 billion to $5 billion in revenue, with a ‘sector-leading’ Ebit margin.
Petrofac shares were 4.8% lower at 112.62 pence each in London on Wednesday afternoon.
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