Petrofac Limited (LSE:PFC) will release a trading statement on Tuesday following an up and down few months, including a profit warning, two big contract win and the appointment of new chief executive Tareq Kawash.
The contract win in Algeria last month and a £13bn framework deal for offshore wind in March, sandwiched April's profit warning where it said EBIT losses would be wider following a review of project costs and the timing of recognition of certain revenue streams.
Following the appointment of Kawash, which saw former boss Sami Iskander leave on 1 April, a "thorough review" was carried out of the company's portfolio of contracts, associated outstanding contractual and commercial issues and "opportunities to improve liquidity by accelerating working capital inflows," it said.
Ahead of the trading update, Derren Nathan, head of equity analysis at Hargreaves Lansdown, said: “Petrofac has challenges and opportunities ahead of it in equal measure.
"In his first year as CEO, Tareq Kawash's priority is to stem losses and cash outflows. While he is looking to the future and pivoting towards the energy transition, the core offer of engineering services to the petroleum industry must also get back on the right foot."
Nathan added that the coming update will see investors and analysts "look for further evidence of conversion in the multi-billion dollar pipeline and for comfort that there are no more nasty surprises to emerge from some of the troubled legacy contracts".