Petrofac Ltd (LON: PFC) ended about 7.0% up on Friday after confirming to have received a sizable contract from the Abu Dhabi National Oil Company.
Details of the new EPC project
ADNOC Gas Processing – a subsidiary of the state-owned group of energy companies awarded the $700 million contract to Petrofac Emirates today.
The project is to “undertake engineering procurement, and construction of a new gas compressor plant” and will help materially improve the gas output at the oil giant’s Habshan Complex, as per the press release.
The stock market news arrives a couple months after Petrofac Ltd reported $310 million of net loss for 2022. At writing, Petrofac shares are up roughly 70% versus their year-to-date low.
Petrofac debuted in the UAE in 1991
Petrofac was disabled from competing in ADNOC tenders for the most of 2021 and early 2022. That ban was removed last year in March.
The oilfield services provider has been active in the United Arab Emirates since 1991. In the press release, Elie Lahoud – the Chief Operating Officer of Petrofac Emirates said:
Petrofac has along and strong track record supporting ADNOC, rooted in our steadfast commitment to maximising local delivery, investing in the local supply chain, and developing local teams.
In a recent trading update, Petrofac had revealed that its backlog will likely jump significantly to about $5.6 billion at June 30th. Wall Street currently has a consensus “overweight” rating on the U.K. based company.
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