June 25 (Bloomberg) -- Petrofac Ltd. slid to a 20-month low in London trading after saying profit growth in a key division will be slower than some analysts had expected.
Petrofac dropped 1.2 percent to 1,219 pence, the lowest price since October 2011. The shares of the oil-services provider are down 25 percent this year.
Integrated energy services will report net income of just under $300 million in 2015, the company said on its website. Mark Wilson, a London-based analyst at Macquarie Bank Ltd., had previously expected profit at the division to come in at about $356 million by then.
“Analysts are finally waking up to the importance of integrated energy services (IES) to the business from here,” said Wilson. He reduced his price target on the stock by 16 percent to 1,130 pence on June 21.
Petrofac, based in London, said in a statement today that profit will be “significantly weighted” in the second half of the year, driven mainly by integrated energy services and onshore engineering and construction.
It plans to return operations in full at the In Salah gas project in Algeria at the end of September or early October, according to Chief Financial Officer Tim Weller. The project was shut down for security review after a terrorist attack at another Algerian facility in January.
The shares fell on “increasingly low visibility of short-term outlook,” said Alain Parent, an analyst at Natixis Securities. At the same time, the Ticleni project in Romania “is not delivering as expected,” he said, referring to an onshore field in the southwest of the nation.
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