News / Petrofac profits plummet after gas plant delay
PETROFAC’s annual profits have slumped by over £300 million as a result of delays in setting up the Shetland Gas Plant, which opened earlier in February some 18 months behind schedule.
The company announced on Wednesday that it made a net profit of $9 million (£6.5 million) in 2015, which was down from $581 million (£418 million) the previous year.
If losses from the creation of the Shetland Gas Plant were not accounted for, Petrofac’s net profit would have been $440 million (£317 million).
Petrofac was the chief contractor for the £3.3 billion project, which opened at the start of February behind schedule and over budget.
The company’s group chief executive Ayman Asfari said its yearly results were directly affected by the project, which taps into the Laggan and Tormore fields west of Shetland.
“However, we faced up to the exceptional challenges we encountered and honoured our commitment to our client,” he said.
“With the plant now successfully operational, these issues are finally behind us.
“Petrofac’s core proposition is based on strong project execution, clear geographic focus, a disciplined approach to bidding and a sustainable, cost-effective structure.”
The flagship development, which French oil company Total has a 60 per cent stake in alongside DONG and SSE, is expected to play a significant role in the UK economy.
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 630 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.