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Petrofac Ltd Reported a Fall in First-Half Due to Ambiguity in Bribe Cases

Petrofac Ltd Reported a Fall in First-Half Due to Ambiguity in Bribe Cases

On Wednesday Petrofac Ltd reported a fall in first-half order input and forecast lower 2020 revenue, indicating ambiguity relating to an investigation into the oilfield services firm’s dealings in Saudi Arabia and Iraq.

Petrofac, which designs, builds and operates oil and fuel services, stated in June it had lost out on $10 billion value of contracts globally due to the investigation by Britain’s Serious Fraud Office (SFO), which led to a February conviction of its former head of sales David Lufkin on 11 counts of bribery affiliated to Iraqi and Saudi contracts.

The company has mentioned that no costs have been brought against Petrofac or another employee.

The FTSE 250 firm’s shares have lost one-third of their worth since Lufkin’s conviction. They were down 2.4% at 396.2 pence at 1056 GMT.

Petrofac stated the investigation, which began in 2017 as a part of a broader probe into Monaco-based Unaoil, had hampered its means to win contracts in Saudi Arabia and Iraq, which accounted for 17% of the group’s revenue in 2018.

The Jersey-based firm expects $13 billion prices of bid opportunities in the second half of the year; however, Cochran stated Saudi Arabia, the world’s largest oil market, and Iraq were excluded from that guidance.

In June, the head of an Iraqi state oil company mentioned it would temporarily suspend Petrofac from new bids.

Petrofac’s earnings earlier than interest, taxes, depreciation, and amortization fell to $305 million for the six months ended June 30 from $334 million a year earlier, with $2 billion in new orders, additionally down from last year.

First-half revenue rose 1.3% to $2.82 billion. The company mentioned it expected $2.6 billion of adjusted revenue for the second half of 2019.

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Dennis Norwood

Dennis Norwood

Dennis is the chief contributing author and editor for the energy column. He has expert knowledge about environmental science has acquired quite a lot of on-field experience about energy resources. He was engaged with many groups to educate people about the diminishing non-renewable energies and usage of renewable energies. He has written many papers based on the implications of renewable energy sources. His articles are very much inspiring and portray the positive aspects of using renewable energies.