Strong revenue growth, up 25% to US$3.2 billion (2014: US$2.5 billion), as a number of OEC projects move into execution stage
Net profit(1) significantly weighted to 2H 2015, reflecting phasing of project delivery, particularly in OEC, as a number of projects are expected to reach their percentage of completion threshold for initial profit recognition in 2H 2015:
o Underlying EBITDA(1) 10% lower at US$305 million (2014: US$340 million)
o Underlying net profit(1) 4% lower at US$130 million (2014: US$136 million)
Success in new orders for ECOM with around US$6.0 billion of order intake secured in the year to date in our core markets; continue to see a healthy pipeline of bidding opportunities
Group backlog stood at US$20.9bn at 30 June 2015 (31 December 2014: US$18.9bn), with ECOM backlog up 14% to US$17.8bn over 1H 2015, giving excellent revenue visibility
On Laggan-Tormore, commissioning is well underway, with major systems handed over to the client; first gas is now expected in Q4 2015 with additional costs recognised of around £30 million in relation to final completion, pre-commissioning and commissioning activities(2)
Rest of our portfolio remains in good shape and is performing in line with our expectations(2); Greater Stella Area development remains on schedule for production in mid-2016
Continued focus on cost efficiencies with incremental savings of US$80 million expected in 2015 delivering savings for our clients and maintaining our strong competitive position
Interim dividend maintained at 22.00 cents per share (2014: 22.00 cents)
Net debt of US$1.0 billion at 30 June 2015 (31 Dec 2014: US$0.7 billion), primarily reflecting ongoing investment in IES's Greater Stella Area project and our offshore installation vessel, payment of the 2014 final dividend and incremental costs on Laggan-Tormore
Ayman Asfari, Petrofac's Group Chief Executive, commented on the half year results:
"Against the backdrop of a challenging environment for the industry, we are in a strong position. We have record levels of backlog in ECOM, which brings excellent revenue visibility for the rest of this year and beyond. Our clients are continuing to invest in large strategic projects in our core markets, where we have an unrivalled track record and a very cost-competitive delivery capability. We continue to drive operational efficiencies to maintain our cost-competitiveness and we are working with our clients to address cost pressures and generate value for them whilst protecting our margins.
"As we look forward, we are focusing on our traditional areas of strength, driving for best in class operations and project delivery and improving our cash generation as we reduce the capital intensity of the business and deliver value from our IES portfolio."
