Petrofac Limited
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Petrofac Limited Financial Snapshot
Operating Performance
Fast Facts
Whiteley Chambers, Jersey, JE4 The company reported revenues of US$4,354.22
Headquarters Address
9WG,United Kingdom million during 2010, with a CAGR of 23.63% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 44 20 78114900
19.12% over the previous fiscal year. In 2010, the
company recorded an operating margin of 15.24%, as
Fax + 44 20 78114901 against 11.82% in 2009.
Website www.petrofac.com
Revenue and Margins
Ticker Symbol, Stock Exchange PFC, London Stock Exchange (LON)
Number of Employees 12,500
Fiscal Year End December
Revenue (in US$ million) 4,354.22
SWOT Analysis
Strengths Weaknesses Return on Equity
Dependency on Engineering & The company recorded a return on equity (ROE) of
Business Mix
Construction Division 71.84% for 2010, as compared to its peers, Acergy
Dependency on Performance of Oil S.A. (Ticker: ACY), Maritime Industrial Services Co.
Expanding Market Share in Sector Ltd. Inc. (Ticker: MIS) and AMEC plc (Ticker: AMEC),
and Gas Industry
which recorded ROEs of 22.07%, 19.05% and
Expanding Operating Margin Limited Liquidity Position 18.16% respectively. The company reported an
operating margin of 15.24% in 2010.
Opportunities Threats
Return on Equity
Growth in Nuclear Power Sector Limited Oil and Gas E&P Spending
Rising Demand for Renewable Energy Stringent Regulations
Strategic Acquisitions Volatile Macroeconomic Factors
Liquidity Position
The company reported a current ratio of 1.11 in 2010,
as compared to its peers, Acergy S.A., Maritime
Industrial Services Co. Ltd. Inc. and AMEC plc, which
recorded current ratios of 1.18, 1.42 and 1.93
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$1,076.24 million, against US$18.53 million current
debt. The company reported a debt to equity ratio of
0.11 in 2010 as compared to its peers, Acergy S.A.,
Maritime Industrial Services Co. Ltd. Inc. and AMEC
plc, which recorded debt to equity ratios of 0.36, 0.17
and 0.00 respectively.
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Petrofac Limited - SWOT Profile Page 1
Petrofac Limited
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
2.2 Key Financial Performance Indicators .................................................................................................................11
2.2.1 Revenue and Operating Profit .........................................................................................................................11
2.2.2 Asset, Liabilities and Capex .............................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................13
2.2.4 Operational Efficiency ......................................................................................................................................14
2.2.5 Solvency ..........................................................................................................................................................15
2.2.6 Valuation ..........................................................................................................................................................16
2.3 Competitive Benchmarking ..................................................................................................................................17
2.3.1 Market Capitalization .......................................................................................................................................17
2.3.2 Efficiency ..........................................................................................................................................................18
2.3.3 Capital Expenditure ..........................................................................................................................................19
2.3.4 Turnover – Inventory and Asset .......................................................................................................................20
3 Mergers & Acquisitions and Partnerships ........................................................................................... 21
3.1 M&A and Partnerships Strategy ...........................................................................................................................21
4 Recent Developments ........................................................................................................................... 24
5 SWOT Analysis ...................................................................................................................................... 26
5.1 SWOT Analysis - Overview ..................................................................................................................................26
5.2 Strengths ..............................................................................................................................................................26
5.3 Weaknesses .............................................................................................