Shares in Petrofac surge after $2.1bn Gasco award
Stock doubles since January after winning over $7bn of new business
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The share price of UK-based oilfield services company Petrofac has seen its share price grow by 5.6% today after it was announced that the company had been awarded another billion dollar contract.
The news that a joint venture involving the company had been awarded a 48-month lump-sum contract for the construction of the 4th NGL train at the Ruwais complex in Abu Dhabi sent Petrofac’s shares the highest level in 12 months.
The project, for Abu Dhabi Gas Industries Ltd. (GASCO), is worth US$2.1 billion and will be carried out in partnership with the South Korean contractor GS Engineering & Construction. Petrofac said in a statement that the value to Petrofac Emirates is around $1 billion.
Petrofac, listed on the London stock exchange, are enjoying a very successful 2009 and that has been reflected in the company’s share price which has doubled since January and now stands at around $12.
The latest award comes as no surprise as Petrofac has already racked up over $5 billion worth of contracts in the Middle east and North Africa so far this year.
The awards include a $2.2 billion contract to build an oil and gas processing plant in Algeria for Sonatrach, a $2.3 billion contract by Abu Dhabi Company for Onshore Oil Operations (ADCO) for the development of the onshore Asab oil field, a $350 million contract for the Kauther gas-field depletion-compression project in the Sultanate of Oman and a contract for the utilities and cogeneration package at Saudi Aramco’s Karan gas development project.
Speaking in May Petrofac chairman Rodney Chase said that he looked forward to another year of strong growth.
“I am pleased to report that we have made a good start to the year and we are confident that 2009 will be another year of strong growth,” Chase said.
“Our largest business, Engineering & Construction, has been very successful in converting last year’s high level of bidding activity, securing US$5 billion of new contract awards in the first quarter of 2009 in Abu Dhabi, Saudi Arabia and Algeria, which gives high revenue visibility through to 2011,” he added.