Petrofac Limited (LSE:PFC) on Wednesday described its outlook as robust, underpinned by strong orders across both E&C and Asset Solutions.
In a trading update, the company, which fabricates oil and gas installations, said order intake totalled around US$6.8 billion in the year to date, with group backlog expected to be around US$8.0 billion at the end of the year.
Petrofac said its order pipeline is healthy and separately announced the second contract award under the six-project, US$14 billion deal with TenneT worth around US$1.4 billion.
The company said net debt is expected to be modestly higher than at the interim results, with positive free cash flow generation by the business in the second half offset by an increase in collateral required for guarantees.
It said the near-term focus remains on strengthening the balance sheet with ongoing review of strategic and financial options.
Asset Solutions and IES underlying performance is in line with guidance, before a one-off bad debt provision in Asset Solutions of around US$12 million and it expects a full-year EBIT loss in E&C of around US$215 million.
Completion of remaining legacy E&C contracts is progressing in line with guidance, it said.