Oilfield services provider Petrofac on Wednesday warned of fewer near-term deals but expects higher energy prices to boost contracts later in 2022 as annual profit halved on lower orders and higher costs.
The company put behind a major overhang last year when it reached a deal with Britain's Serious Fraud Office following a four-year investigation that had hindered its ability to secure contracts in Middle Eastern markets.
United Arab Emirates-backed oil firm ADNOC last week lifted a year-long suspension on Petrofac that had barred it from competing for new contracts in the Gulf country.
"While clients continue to prioritize cash preservation over new investments, we expect the increasingly supportive energy price environment to improve the outlook for awards as the year progresses," Chief Executive Officer Sami Iskander said in a statement.
Crude prices have surpassed the $100 per barrel mark after Western nations imposed sanctions on Russia — among the world's largest oil and gas producers — after it invaded Ukraine.
Petrofac said its order book at the end of 2021 stood at $4 billion, with Russia accounting for 0.6% of that backlog.
Core profit fell to $104 million in the year ended Dec. 31 from $211 million a year ago, the London-listed company said.
(Reuters - Reporting by Pushkala Aripaka and Shanima A in Bengaluru; editing by Uttaresh.V and Sriraj Kalluvila)