StockMarketWire.com - Services company Petrofac said it expected its annual margins at its engineering and construction business to be at the lower end of its guidance range.

Engineering and construction revenue for the full year was expected to be around $4.5bn, the company said.

The separate engineering and production services division, meawnhile, was performing in line with expectations, with growth in projects offsetting lower activity from operations.

In the integrated energy division, net production was expected to be around 2.1m barrels of oil equivalent for the first half of the year, down from 3.1 mmboe), in line with expectations and reflecting divestments in the second half of 2018.

Overall new order intake for the year to date stood at $1.7bn.

'We are trading in line with our prior guidance reflecting solid operational performance across the business,' chief executive Ayman Asfari said.

'We continue to maintain excellent client relationships in all of our markets, although new order intake in the year to date reflects our recent challenges in Saudi Arabia and Iraq.'

'Looking forward, the group has a busy tendering pipeline in other markets with around US$15bn of bid opportunities due for award in the second half of the year.'

'We are making good progress delivering our strategic objectives.'

'We continue to target best-in-class delivery for our clients and are improving our competitiveness by reducing costs, driving digitalisation, increasing local content and investing in talent.'

'Furthermore, we are well positioned in the second half with good revenue visibility, a strong balance sheet and high levels of tendering activity.'


At 8:21am: [LON:PFC] Petrofac Ltd share price was -17.05p at 416.45p



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