www.petrofac.com

FOCUSING
ON CORE
STRENGTHS

Annual report and accounts 2015

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Group Chief Executive's Strategic review (PDF 1MB)

Against the backdrop of a very challenging industry environment, and a disappointing operational performance on one project in particular, 2015 was the year in which Petrofac returned to its traditional areas of focus.

During the year we renewed our commitments on operational excellence and cost efficiency across the business, and refocused our priorities on our core areas of expertise.

We continue to identify and progress cost saving opportunities which will deliver benefits in 2016 and beyond. The strength of our backlog and position in our core markets means our revenue visibility is better than it has been at any other point in our 35-year history.
Ayman Asfari Group Chief Executive

Group performance at a glance

A leading global service provider

Performance Highlights 2015

  • Achieved order intake in 2015 of US$8.6 billion, securing major new awards and extensions, including in Kuwait, Saudi Arabia, Oman and the United Kingdom
  • Commercial production has now commenced on Laggan-Tormore following completion of construction activities, transfer of care and custody of the plant to our client and introduction of gas before end 2015
  • Substantially completed the Bab Compression project and phase 1 of the Bab Habshan project, both in Abu Dhabi, and completed the second of three trains on the Badra project in Iraq
  • Good progress on commissioning of the topside systems on the FPF1 floating production facility with marine work expected to be completed to enable sailaway during the second quarter of 2016; first production from the Greater Stella Area development is expected in summer 2016
  • Continued to work towards migration of our Production Enhancement Contracts to Production Sharing Contracts in Mexico

1 Before exceptional items and certain re-measurements.

Revenue US$6,844m (2014: US$6,241m)
EBITDA1 US$312m (2014: US$935m)
Return on capital employed1 3% (2014: 18%)
Earnings per share (diluted)1 2.65¢/s (2014: 168.99¢/s)
Net profit1 US$9m (2014: US$581m)
Backlog US$20.7bn (2014: US$18.9bn)
Divisions
Engineering, Construction
Operations & Maintenance (ECOM)
Integrated Energy
Services (IES)

Onshore Engineering & Construction (OEC) Onshore Engineering & Construction delivers onshore engineering, procurement and construction projects. Predominantly focused on markets in the Middle East, Africa and the Caspian region of the CIS.

Group revenue contribution

OEC Graph
Revenue US$4,383m (2014: US$3,241m)
Net loss1 US$59m (2014: US$403 net profit)

Offshore Projects & Operations (OPO) Offshore Projects & Operations, which includes our Offshore Capital Projects service line, specialises in both offshore engineering and construction services, for greenfield and brownfield projects, and the provision of operations and maintenance support, onshore and offshore.

Group revenue contribution

OPO Graph
Revenue US$1,484m (2014: US$2,009m)
Net profit1 US$68m (2014: US$64m)

Engineering & Consulting Services (ECS) Engineering & Consulting Services is Petrofac’s centre of technical engineering excellence. From offices across the Middle East and North Africa, CIS, Asia-Pacific, Europe and The Americas, we provide engineering services across the life cycle of oil and gas assets. Our teams execute all aspects of engineering, including conceptual studies, front-end engineering and design (FEED) and detailed design work, for onshore and offshore oil and gas fields and facilities.

Group revenue contribution

ECS Graph
Revenue US$715m (2014: US$437m)
Net profit US$50m (2014: US$33m)

Integrated Energy Services (IES) Integrated Energy Services provides an integrated service for hydrocarbon resource holders under innovative commercial models that are aligned with their requirements. Projects cover upstream developments, both greenfield and brownfield, and related energy infrastructure projects, and can include investment.

Group revenue contribution

IES Graph
Revenue US$531m (2014: US$782m)
Net profit1 US$5m (2014: US$131m)

1 Before exceptional items and certain re-measurements.

Segmental performance (PDF 1MB)

Our business model

Working across the international oil and
gas industry, we help our clients unlock
the full value of their energy assets.

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Our business model explained

Our year-end backlog stood at record levels

Excellent revenue visibility In a challenging market, Petrofac has enjoyed high levels of new orders and contract extensions. In 2015 we increased our order backlog further to US$20.7 billion, and our pipeline of bidding opportunities remains robust. This sets us apart from our peers and gives us excellent visibility of future revenues.

Year in review 2015 (PDF 1MB)
Year review map

1. UKCS Five-year contract extension from EnQuest for Duty Holder and brownfield modifications services for the Kittiwake platform.

Duty Holder Support Services contract to support Oranje-Nassau Energie (ONE) US$45 million over three years.

Renewed six operations and maintenance contracts in the UKCS, including one for five years with Canadian Natural Resources International (CNRI) across its North Sea assets.

Petrofac and GE awarded a contract worth over £110 million to connect up to 336 megawatts of clean energy from the Galloper Offshore Wind Farm off the coast of Suffolk, UK, to the British grid.

2. Iraq US$100 million one-year extension operations and maintenance services contract with South Oil Company.

Three-year general construction management services contract by BP Iraq for the Rumaila field.

Multi-million dollar technical training contract with Shell Iraq.

3. Kuwait US$4 billion award for Kuwait Oil Company’s (KOC) Lower Fars heavy oil development programme, Petrofac leading a consortium with Greece-based Consolidated Contractors Company (CCC) as its partner.

Award for KOC’s Manifold Group Trunkline system in the north of Kuwait, valued at approximately US$780 million.

4. Saudi Arabia Contract to undertake the engineering, procurement and construction of a sulphur recovery plant as part of Saudi Aramco’s Fadhili gas programme.

5. Oman Circa US$900 million engineering, procurement and construction management contract (EPCm) for Petroleum Development Oman to provide services for its Yibal Khuff project.

6. Bahrain Contract win for installation of a new gas dehydration facility for Tatweer Petroleum.

7. Australia Award of an Integrity and Maintenance Programme Development contract for the Ichthys LNG Project.

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