Petrofac disappoints investors
Oil and gas services group Petrofac reported a strong first half but investors punished the firm for not giving them even more.
Oil and gas services group Petrofac reported a strong first half but investors punished the firm for not giving them even more.
The company stuck with its prediction of full year net profit growth of at least 15% in 2012.
But investors judged the company harshly, pushing shares in the FTSE 100 firm down 4.6% in early trading.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Even though earnings per share beat, the market hasn't been told anything positive it didn't already know," said David White, a trader from SpreadEX.
"Some analysts are citing the number of delayed contracts awarded in Onshore Engineering and Construction as a reason to temper the full year 2013 outlook," he added.
Chief Executive Ayman Asfari said over the past few months there had been delays in certain contract tender processes with a number of anticipated awards moving from 2012 into 2013.
"Whilst these delays impact the expected level of 2012 new orders for Onshore Engineering & Construction, we continue to expect our strategy to deliver earnings growth in 2013 and beyond," he said.
"As a result, we remain confident of achieving our target of more than doubling our recurring group 2010 earnings by 2015."
Revenues at Petrofac were up 20% to $3.2bn, with earnings per share up 32% to 94.8c.
Pre-tax profits rose to $412.5m, from $300m the year before.
Petrofac declared an interim dividend of 21 cents per share, an increase of 20.7% on the first half of 2011.
Going forward, the firm said it remained confident of achieving a target of more than doubling recurring 2010 group earnings by 2015.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Investors pull money from UK equities as government warns of “painful” Budget
The government’s post-election honeymoon period has been short-lived, and investors are shying away from UK equities as a result
By Katie Williams Published
-
Top global fintech companies to invest in
One British fintech hogs the headlines, but there are two top performers in the US. We explain where you should put your money
By David C. Stevenson Published