Petrofac issues the following pre-close trading update ahead of the announcement of its interim results for the six months ending 30 June 2015 on 25 August 2015.
•Construction activities on the Laggan-Tormore project are substantially complete; we are now busy with final completion and pre-commissioning-related activitiesand our focus remains on delivering first gas in Q3 2015; additional completion and pre-commissioning works are expected to lead to incremental pre-tax costs of approximately £30m; deferred tax asset recognised in respect of tax losses on the project of approximately £20m
•The rest of our portfolio continues to perform in line with our operational and financial expectations(1)
•Net profit(2) expected to be significantly weighted towards 2H 2015, reflecting phasing of project delivery, particularly in OEC, where a number of projects are expected to reach their percentage of completion threshold for initial profit recognition in 2H 2015
•ECOM order intake of US$4.7bn in the year to date, including the US$900m Yibal Khuff award in June 2015; Group backlog stood at record levels of US$20.5bn at 31 May 2015 (31 December 2014: US$18.9bn), with ECOM backlog up 12%
•Net debt of US$1.2bn at 31 May 2015 (31 December 2014: US$0.7bn), primarily reflecting ongoing investment in IES's Greater Stella Area project and our offshore installation vessel, payment of the 2014 final dividend and incremental costs on Laggan-Tormore