Petrofac is a leading provider of oilfield services to the international oil & gas industry. It is specialized in engineering and construction services, especially in offshore projects.

Yesterday, during earnings release the management showed excellent financial results. The company’s revenue growth of 33%, and net profit for year 2011 reached $539 million, up 25% against 2010. The company’s activity most performing is concerned the off shore projects, with net profit increased to 153% due to record activity levels and a provision release following completion of a long-term maintenance services contract. During the conference, the management confirmed the targets for 2012 net profit, which will be growth at least of 15%, further progress towards target of more than doubling 2010 group earnings by 2015. In the same time according to Thomson Reuters’ consensus the company seems weakly valued with a price earnings ratio of 13,8 for this financial year.

Technically, the share is in bullish trend on short, mid and long-term. Since last September the company won nearly 45%. This upward movement is supported by moving averages. On daily chart the moving average 50 periods could be taken as a transversal support. In fact we might imagine the share could continue the correction phase reaching 1525 GBp, area where could benefit from meeting with moving average. This point could be a good point for enter a long position in order to take advantage from a potential technical rebound towards 1650 GBp, repeating the the same movement of last November. We suggest a stop loss under 1500 GBp, in order to cover the position.