Ayman Asfari

…FOR A RESILIENT FUTURE

In 2016 we continued to focus on Petrofac’s core strengths, with a particular emphasis on operational excellence.

We delivered good operational performance, with high levels of activity in our lump-sum business and continued earnings growth in our reimbursable business. Yet, at the same time, we took considerable cost out of the Company and continued to re-shape our Integrated Energy Services business.

With excellent visibility of revenues for 2017, and strong credentials in promising sectors of the market, we have a resilient business that is well positioned for the future.

Ayman Asfari Group Chief Executive Group Chief Executive’s Strategic Review
(PDF 1MB)

Group performance at a glance

A leading global service provider

2016 at a glance

  • Petrofac has delivered positive results for 2016, driven by record revenues, significant cost reduction and strong cash conversion
  • In a busy year, the Group has also demonstrated its track record for operational delivery with more than 240 million man-hours worked across the portfolio
  • Whilst the market remains competitive, bidding activity has increased in recent months. We have a robust pipeline of opportunities across our core markets and remain cost competitive, as evidenced by recent bidding success
  • Petrofac remains firmly focused on its core strengths, committed to reducing capital intensity and maintaining a strong balance sheet
  • Operational excellence and excellent revenue visibility position us well in 2017 for a recovery in our core markets

Revenue

US$7,873m (2015: US$6,844m)

EBITDA1

US$704m (2015: US$312m)

Net profit1

US$320m (2015: US$9m)

Reported net profit

US$1m (2015: US$349m net loss)

Return on capital employed 1

17% (2015: 3%)

Backlog

US$14.3bn (2015: US$20.7bn)

Earnings per share (diluted)1

93.29¢/s (2015: 2.65¢/s)
1 Business Performance before exceptional items and certain re-measurements.

Refining our Group divisions

We implemented a Group reorganisation with effect from January 2016. The reorganisation has improved our efficiency through de-layering and centralising back-office services, while allowing us to maintain our focus on delivery, and our responsiveness, both to market conditions and our clients’ needs.

  • Engineering & Construction (E&C)

    Engineering & Construction delivers onshore and offshore engineering, procurement, construction, installation and commissioning services on a lump-sum basis. We have more than 35 years of expertise in this area and our services encompass both greenfield and brownfield developments.

    Group revenue contribution

    graphic

    Revenue

    US$5,928m (2015: US$4,821m)

    Net profit/(loss)1

    US$311m (2015: US$1m net loss)
  • Engineering & Production Services (EPS)

    Engineering & Production Services brings together our services’ capability across brownfield projects and operations, greenfield projects through concept, feasibility and front-end engineering and design (FEED) studies as well as a range of operations, maintenance and engineering services for onshore and offshore projects.

    Group revenue contribution

    graphic

    Revenue

    US$1,725m (2015: US$1,739m)

    Net profit1

    US$111m (2015: US$58m)
  • Integrated Energy Services (IES)

    Integrated Energy Services provides an integrated service for clients under flexible commercial models that are aligned with their requirements. Our projects cover upstream developments - both greenfield and brownfield, related energy infrastructure projects, and can include investment.

    Group revenue contribution

    graphic

    Revenue

    US$271m (2015: US$379m)

    Net profit/(loss)1

    US$(42)m (2015: US$7m net profit)

1 Business Performance before exceptional items and certain re-measurements.

Our business model

Engineering expertise is at the heart of everything we do

Our business model

Engineering expertise is at the heart of everything we do

Business model graphic
Operational progress 2016

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© Petrofac Limited 2017
© Petrofac Limited 2017
Registered office: 44 Esplanade, St Helier, Jersey, JE4 9WG