Petrofac’s Order Backlog for H1 2023

Petrofac, the London-listed provider of services to the energy industry, has reported a significant increase of order backlog for H1 2023. The backlog is expected to reach around $5.6 billion at the end of June, driven by strong order intake in both engineering and construction and asset solutions. However, the company predicts that revenue for the engineering and construction division will fall to $500 million from $700 million in the prior-year period, due to lower levels of activity. Meanwhile, revenue for asset solutions is expected to rise to around $700 million from $508 million a year prior. The earnings before interest and taxes margin is predicted to be around 2%-3% in asset solutions with EBIT expected to be weighted to the second half of the year. For the integrated energy services unit, net production forecasted is on par with the prior year at 0.6 million barrels of oil. The company aims for broadly neutral free cash flow for the full year, while free cash flow is expected to be negative in H1.