Petrofac Ltd. (PFC), the U.K. oil and gas services provider, expects “modest” growth in profit this year after the startup of the In Salah gas project in Algeria was pushed back into the second half.
In Salah, which was shut down for security review by operators BP Plc (BP/), Statoil ASA (STL) and Sonatrach after a terrorist attack at another Algerian facility in January, will restart in the second half of the year, Petrofac said today. That’s later than the company anticipated and will cause some earnings to be delayed until next year, it said.
The project “was initially expected to recommence quickly,” Chief Financial Officer Tim Weller said on a conference call. “This later than expected remobilization will result in significant deferral. As a result, we see modest growth in profit this year.”
The shares fell 2.7 percent to 1,325 pence in London.
Petrofac, which has fallen about 19 percent this year, says it’s still set to meet a target of doubling earnings from 2010 to 2015. The company’s order backlog rose to a record $12.1 billion as of the end of April, it said in a statement today.
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