Despite the lower oil prices, we have at least one company announcing higher profits than last year.
EBITDA up 16% to US$207.5 million (2008: US$179.2 million)
Net profit for the period up 20% to US$145.6 million (2008: US$121.2 million)
Revenue up 1% to US$1,586 million (2008: US$1,576 million)
Of course as an oil & gas service company, its revenues and profits are not directly tied to oil prices. However, its customers are all directly effected, and many have been cutting investments. Their increased order book is therefore very impressive.
First half order intake(1) of US$5.8 billion (2008: US$1.7 billion) with backlog(2) of US$8.4 billion at 30 June 2009 (31 December 2008: US$4.0 billion)
Their success has been to win contracts from those companies who see the current price environment as an opportunity.
Successful in securing US$5.9 billion of new contract awards in the year to date (US$5.4 billion during 1H 2009), including lump-sum contracts in Abu Dhabi, Algeria, Oman and Saudi Arabia.
For those that have the cash, now is the time to invest. Costs are lower and projects will come to fruition in better times. Thankfully for companies like Petrofac there are enough companies with deep pockets and long term horizons.