Petrofac (LSE: PFC), the oil and gas service provider, confirmed that it is on track to deliver full-year net profit in the range of $580m to $600m, maintaining previous guidance.
The firm has recently added to its portfolio of engineering and construction projects, with contract wins in Kuwait and Malaysia for $0.7bn and 0.5bn respectively. The ECOM division has already had its most successful year for new awards, taking $9.4bn orders year-to-date.
Shares of Petrofac climbed 4% to 1,030p in early trade, which reduces the loss the FTSE 100 member has made this year by a fifth to 16%.
The order backlog grew to $21.2bn in the three months ended 30 September, “giving good revenue visibility for the remainder of the year”.
Petrofac, which helps national oil companies rejuvenate mature oil fields, added “our focus remains on the delivery of key operational milestones” on its existing project portfolio. Petrofac only books revenue once these targets are hit.
Net debt stood at $1.1bn at the end of September, down from $1.3bn three months earlier.
Prior to today, the City expected Petrofac to revel earnings per share of 104p in its upcoming annual results, supporting a near-term P/E of 10.
