(Updates with closing share price in fifth paragraph.)
Dec. 13 (Bloomberg) -- Petrofac Ltd., the U.K. oilfield services and engineering provider, said it will beat its profit target in 2011 as it works through a record order backlog.
Net income will rise at least 20 percent, the London-based company said today in a statement, more than the 15 percent goal set at the start of the year. Petrofac expects to have an order backlog of $10.6 billion on Dec. 31, compared with last year’s record $11.7 billion, and will have $1.3 billion in cash.
“We have a robust backlog, a strong financial position and a good outlook for the bid pipeline,” Chief Financial Officer Tim Weller said on a conference call with journalists. “We’re very confident about our medium-term target of at least doubling our earnings by 2015.”
Chief Executive Officer Ayman Asfari is expanding in Thailand, Indonesia, Malaysia and Nigeria. This year Petrofac has won contracts in Mexico and was hired to upgrade floating production and storage facilities in the U.K. North Sea. The company reported net income of $557.8 million last year.
Petrofac added 5.1 percent to 1,443 pence as of the 4:30 p.m. close in London. The shares are down 9 percent this year.
“Given our excellent earnings visibility, we expect to deliver strong growth in 2012,” Asfari said in the statement.
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