Petrofac Limited (POFCF) Q2 2023 Earnings Call Transcript

Petrofac Limited (OTCPK:POFCF) Q2 2023 Earnings Conference Call August 10, 2023 3:30 AM ET

Company Participants

Tareq Kawash – Group Chief Executive Officer

Afonso Reis e Sousa – Chief Financial Officer

Conference Call Participants

Alexander Smith – Investec

Moyo Adebayo – Goldman Sachs

Richard Dawson – Berenberg Bank

Tareq Kawash

Good morning, everyone, and thank you for joining us. I’m Tareq Kawash, Petrofac’s Group Chief Executive. I’m very pleased to be joined by Afonso Reis e Sousa, our Chief Financial Officer. On screen, you should see our standard disclosure notice, please read it at your leisure. In a few moments, Afonso is going to take you through the detail of our financial results.

First, I’d like to summarize progress on our key priorities. The first half of 2023 was Petrofac’s strongest period of new awards in many years. Thanks to the efforts of our people around the group, we secured over $4 billion of new awards in both traditional and renewable energies. With this high quality backlog, a diverse pipeline of future opportunities, and a growing talent pool, we have created a strong base for which to move forward.

In addition to building a robust backlog, continuing to strengthen our balance sheet is critical to our plan to restore Petrofac to sustainable, profitable growth. While the first half results we’ve announced for our E&C business are disappointing, they reflect steps taken to resolve historical contractual disputes and release working capital in the second half of the year. Over the coming months, we will continue to close out the legacy portfolio, while improving our financial resilience through advanced payments and commercial settlements due in that period, maintaining our target of broadly neutral free cash flow for the full year.

At the same time, I’m focused on ensuring exemplary execution and driving a

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