* H1 revenue down 12.5 pct at $2.8 billion
* Net profit down to $243 million from $326 mln
* Shares up 5 percent in early trade
By Stephen Eisenhammer
LONDON, Aug 27 British energy services firm
Petrofac Ltd said it was well placed to capitalise on
increased investment in oil and gas projects in Mexico as the
country opens up its energy industry, even if the reforms mean
Strict restrictions on foreign investment in Mexico's oil
and gas industry previously allowed Petrofac to secure
profitable production enhancement contracts, in which the firm
received a set fee to operate ageing fields.
However, with President Enrique Pena Nieto proposing
profit-sharing contracts for private companies, the market is
expected to open up to oil majors.
"(The reforms) naturally could lead to more competition in
the country," Petrofac CFO Tim Weller told reporters. "But there
will be more investment being made in oil and gas infrastructure
in Mexico which could be an opportunity for service companies
For Weller, Petrofac's experience in Mexico will be key to
making the most of the new opportunities. "We've got to look to
build on that strong relationship with Pemex in taking our
business in that country forward," he added, referring to
Mexico's state oil monopoly.
His comments came after Petrofac reported an expected 12.5
percent fall in first-half revenue, saying earnings would be
heavily weighted to the second half due to the timing of key
Revenue fell to $2.8 billion from $3.2 billion and net
profit was down to $243 million from $326 million.
The firm's shares were up 5 percent in early trade.
The company, which designs and builds oil and gas
infrastructure and also invests alongside oil firms in oil
fields, said it remained on track to meet its target of doubling
2010 earnings of $433 million by 2015.
It said it would raise its interim dividend by 5 percent to
22 cents per share.
Delays at the In Salah gas project in Algeria knocked
Petrofac's forecasts earlier this year, with the firm altering
its expectations for profit growth to "modest" from "good."
Weller said the restart of In Salah was progressing as
expected, with full construction underway by September or early