LONDON, June 24 (Reuters) – Oil and gas services company Petrofac (PFC.L) said it expected its backlog of contracts to be higher at the end of the year than it was at the start as its bidding pipeline strengthened.
Group backlog is estimated to be around $6.9 billion on June 30 the FTSE 100 company said on Thursday and by the end of 2010 it expects it to be above the $8.1 billion level it stood at on December 31 2009.
The company said it was making good progress on the South Yoloten project in Turkmenistan and expects to make a decision on whether to convert it to a much larger contract in the near future.
Petrofac said its engineering and construction division, its largest unit, continued to bid for contracts in its core markets of the Middle East, Africa and around the Caspian Sea and was establishing a presence in Iraq, a new market for the company, as it sees near-term opportunities arising.
The company said its smaller engineering, training services and production solutions division continued to see subdued activity but was on track to secure its first production enhancement contract.
Shares in Petrofac closed at 1,251 pence on Wednesday, valuing the company at 4.3 billion pounds ($6.4 billion).
(Reporting by Sarah Young; Editing by Matt Scuffham)