Petrofac pushed higher by new contract

Shares in Petrofac are up 1.1% after the oil services provider revealed it has won a new contract worth $120 million.

London-listed Petrofac has been awarded the contract by the Malaysian-based company Petronas. The contract is in relation to the management of two training facilities, lasting between five years with the option of being extended for an additional two years.

Last month the company reported a first-half pre-tax profit of $300 million, down from  $413 million for the same period last year. Despite the 25% decline in profit, the share price has performed well as the company says it is on track to achieve its full-year target.

Petrofac also announced an interim dividend of 22 cents, an increase of 5% compared with last year, evidence that the company is confident in its future earnings ability. A higher dividend also makes it more attractive to institutional investors like pension funds.

Petrofac (DFB) chart

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