Engineering group Petrofac's profits for 2015 were severely dented by losses on its work on Total's Laggan-Tormore project in the Shetlands, Petrofac said February 24.

 

Not counting the Laggan-Tormore loss, Petrofac made a net profit of $440mn for the year, in line with market expectations. But once the project was factored in, net profit for the year was only $9mn. The work on a new gas terminal suffered delays and complications adding to costs, hit by problems including bad weather.

 

Petrofac CEO Ayman Asfari said that while Laggan-Tormore had affected 2015's figures, "we faced up to the exceptional challenges we encountered and honoured our commitment to our client." He added: "with the plant now successfully operational, these issues are finally behind us."

 

French petroleum group Total announced the launch of production from the Laggan and Tormore gas and condensate fields February 8. The fields are expected to produce some 90,000 boe/day, exported via the new plant on the Shetland Islands, with the gas piped on to the Scottish mainland. Total has 60% and Danish Dong and UK utility SSE each have 20%.

 

Petrofac's revenue for 2015 was $6.8bn, up 10% from $6.2bn the previous year.

 

The company said it saw "continuing investment" from clients in its core onshore markets in the Middle East and North Africa and its overall portfolio was "in good shape."