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Petrofac Secures New Contracts, Reports $500 Million in Awards

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Petrofac Limited (POFCY - Free Report) has reported that its Asset Solutions segment secured several new contracts and expanded its current scope of work in the first quarter of 2025. The secured projects add a total of $500 million in earnings for the company.

The new projects also imply that the company’s Asset Solutions division is expanding in core markets and other targeted locations such as the U.K., Europe, the Middle East, Africa, Asia and the United States. The secured contracts and scope expansion cover late-life asset management, which involves optimizing the asset life of aging oil and gas facilities. The contract also covers decommissioning services, meaning the removal of onshore and offshore oil and gas infrastructure when it reaches the end of its asset life. It includes integrated services as well.

By expanding into newer geographies, Petrofac is building a diversified global presence. The new awards demonstrate a strong start to 2025 for the Asset Solutions division. Furthermore, the company mentioned that it has a strong project pipeline across various locations, lined up for the rest of the year. These contract awards, along with scope expansions, underscore its extensive knowledge and experience in managing mature assets and decommissioning services. These awards align with POFCY’s broader strategy of tapping into newer geographic locations while expanding its service offerings.

POFCY’s Zacks Rank and Key Picks

Petrofac, an oilfield services firm, currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Nine Energy Service (NINE - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) . While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service and Kinder Morgan carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.

Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to its shareholders.


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