Petrofac Limited (LON:PFC) shares reversed opening gains after the oil services firm reported weak full-year results, although there was a 7% increase in "business performance net profit" to US$343mln.
The FTSE 250-listed firm reported a net loss of US$29mln, after impairments and exceptional items of US$372mln, on revenue of US$6.39bn, down from US$7.87bn in 2016. Underlying earnings (EBITDA) totalled US$730mln, compared with US$704mln.
Ayman Asfari, Petrofac chief executive, told investors that the company’s ‘competitive position’ had helped secure a strong recovery for new orders and highlighted that tendering activity remains high.
"We have delivered solid full year results, good operational performance and strong financial discipline, while maintaining our focus on best-in-class and safe project execution for our clients,” said Asfari.
He added: “We are also delivering our clear, focused strategy. The group has secured awards in a broad range of markets during the year. Operational excellence is maintaining our strong competitive position and protecting our differentiated margins.
“Furthermore, we are continuing to reduce capital intensity and enhance returns, evidenced by the disposal of non-core assets and our decision to exit the deep-water market.”
But investors were not impressed, with Petrofac shares dropping 6.3% to 423.40p in late afternoon trading.
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