December 17, 2010 / 1:16 PM / 10 years ago

STOCKS NEWS EUROPE-Petrofac higher after bullish update

Shares in Petrofac (PFC.L) gain 0.7 percent after the oil and gas services firm says it is confident of moving into the next phase of its South Yoloten gas project, and is bullish on delivering continued strong growth in coming years.

Petrofac says in a trading statement that although the conversion process has taken longer than originally expected, it remains confident of moving into the construction phase of the project in Turkmenistan.

“The statement today provides further reassurance of progress, and as (Petrofac’s) Chief Exec Ayman Asfari says, even if the Petrofac doesn’t move into the EPC phase of the South Yoloten project in Turkmenistan until 2011, the group still expects to close 2010 with record levels of year-end backlog,” says Ed Woolfitt, head of trading at Galvan Research.

“With this ever growing fundamental platform to back the growth story and with the share price steady and attractively priced at 1,490 pence … we repeat our buy recommendation for a return to recent intraday year highs of 1,540 pence and beyond in the run up to the full year results announcement,” Woolfitt adds.

For more on Petrofac’s update, double click on [ID:nLDE6BE0QV]

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net

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