Overall, Group order intake for the year was USUSD1.6 billion, representing a book-to-bill of 0.4x. The most significant new award in E&C was the Seagreen offshore wind project in Scotland with SSE for the EPC of the HVAC onshore and offshore substations. In EPS order backlog remained stable in 2020 at USUSD1.7 billion with a book-to-bill of 1.0x, reflecting robust order intake in challenging market conditions.

OUTLOOK

Market conditions remain challenging despite a recovery in the oil price, an improvement in the near-term economic outlook and an increase in tendering activity in the first quarter of 2021. Clients are continuing to adopt tough commercial positions and delays in awards remain a risk. In this environment, and with the UAE market currently unavailable to us, our priorities are clear.

Firstly, we are focused on rebuilding our order book, which provides near-term revenue visibility. The Group has USUSD3.0 billion scheduled for execution in 2021, comprising USUSD2.2 billion in E&C and USUSD0.8 billion in EPS. We expect late 2021 to mark the start of a sustained recovery period for the industry, with a return to pre-2020 capex spend levels by 2023. We will seek to capitalise on this recovery in our core addressable markets, whilst also targeting growth in selective new geographies and accelerating our transition to new energies. To support this ambition, the Group has a diverse tendering pipeline of around USUSD20 billion of opportunities scheduled for award by the end of 2021 and USUSD34 billion of opportunities due for award in 2022. Notwithstanding this, we are prudently assuming that capital discipline by clients will continue to delay awards in the near term, with new orders likely to remain depressed in E&C in the current year.

Secondly, we are committed to exercising capital discipline, cutting costs and conserving cash. We are taking additional measures to reshape the business, which will reduce overhead and project support costs, whilst preserving core capability.

Finally, we are focused on delivering operational excellence, supported by investment in digitalisation, automation and process efficiency. This unrelenting focus on improving productivity and capability will help mitigate the impact of the challenging market conditions we continue to face, with both E&C and EPS net margins currently forecast to grow modestly in 2021.

STRATEGY UPDATE

Sami Iskander, Petrofac's Group Chief Executive, commented:

"Clients choose Petrofac due to our differentiated capabilities, strong local content and excellent track record of execution. However, more recently we have faced a number of headwinds. Some of these were self-inflicted as a result of poor execution. Others, such as the ongoing SFO investigation (9), continue to have very real and material impact on the business. Finally, the market has created its own challenges. However, as the new CEO I am focused on rebuilding our reputation, reshaping the business, returning to growth and accelerating our pivot to new energies. We aim to reinforce our clients' confidence in us by demonstrating the highest levels of governance and delivering exceptional project execution. As we do this, we will be able to take advantage of growth in our addressable markets, including new growth areas associated with the energy transition."

Following the completion of a strategic review led by Petrofac's Group Chief Executive, Sami Iskander, the Group today announces a refreshed strategy, focused on three pillars: best-in-class delivery, returning to growth and superior returns.

Best-in-class delivery

For almost 40 years, Petrofac has designed, built and operated some of the world's largest energy projects. A key point of differentiation has been the combination of agile, client-centric local execution with our global capability, which has delivered best-in-class industry margins.

Looking forward, our strategy is focused on improving the consistency of our delivery, ensuring the same high Petrofac standard of operational excellence is guaranteed on all projects. This will be achieved by simplifying our operating model and establishing a single technical services function providing technical excellence and independent assurance centrally for our global projects.

We will build on our differentiated track record of local delivery by allocating resources in existing and new markets where we see sustainable growth opportunities and where we can deepen our understanding of local client requirements, supply chains and regulations, as well as maximising In-Country Value.

Return to growth

The second pillar of our strategy is to return to growth, expanding within and beyond our traditional core markets and accelerating our drive into new energies. The MENA region has the lowest costs of hydrocarbon production in the world and access to billions of barrels of reserves and resources. As the world emerges from the COVID-19 pandemic, spending in these markets is expected to recover first and remain the most resilient over the long term as hydrocarbons remain a significant proportion of global energy demand, even as the world transitions towards a net zero environment.

We are targeting significant growth in new energy markets, leveraging the sophisticated and transferable skillset we have developed in oil and gas, and building on the success we have had to date in new energies markets, such as offshore wind.

Underpinning our strategy are compelling structural growth trends across our addressable markets. By 2025, we expect our total annual addressable markets to increase significantly from around USUSD70 billion today to around USD100 billion, including around USD20 billion in new energies (comprising offshore wind, CCUS, hydrogen and waste-to-energy/fuels).

Superior returns

Sector-leading margins have long been central to Petrofac's investment case. Through best-in-class delivery, an enhanced operating model and a more competitive cost base, we are targeting a return to generating premium margins, consistently over the medium term.

Our transition over the past three years to a capital light business has better insulated us against the impact of current market conditions. It will also improve cash generation and returns on capital as we return to growth. We will maintain financial discipline and continue to target a net cash position in the medium term.

Through embedding ESG at the heart of everything we do and fully integrating it into our strategy, we will create sustainable value for all stakeholders and be a force for good, playing a significant role in driving the energy transition.

As we rebuild the backlog and return to generating significant free cash flow, we expect to be able to reinstate a sustainable dividend as a key element of a disciplined capital allocation framework.

NOTES 1. Business performance before separately disclosed items. This measurement is shown by Petrofac as a means of

measuring underlying business performance. 2. Attributable to Petrofac Limited shareholders. 3. New order intake is defined as new contract awards and extensions, net variation orders and the rolling increment

attributable to EPS contracts which extend beyond five years. 4. Backlog consists of: the estimated revenue attributable to the uncompleted portion of Engineering & Construction

division projects; and, for the Engineering & Production Services division, the estimated revenue attributable to

the lesser of the remaining term of the contract and five years. 5. Associate income from the Group's investment in PetroFirst Infrastructure Limited entities was reclassified from

IES to EPS with effect from 1 January 2020. Prior year comparables have been restated. 6. Average net realised price is net of royalties and hedging gains or losses. It is based on sales volumes, which may

differ from production due to under/over-lifting in the period. 7. Net debt comprises interest-bearing loans and borrowings less cash and short-term deposits (i.e. excludes IFRS 16

lease liabilities). 8. Gross liquidity of USUSD1.1 billion on 31 December 2020 consisted of USUSD0.6 billion of gross cash and USUSD0.5 billion

of undrawn committed facilities. 9. No charges have been brought against Petrofac, or any officers or current employees. Petrofac continues to engage

with the SFO and will respond to any further developments as appropriate. We are focused on bringing this matter

to closure as quickly as possible and believe this is in the best interests of all stakeholders.

PRESENTATION

Our full year results presentation will be held at 9.30am today and will be webcast live via:

https://broadcaster-audience.mediaplatform.com/#/event/606d52f6c0aea403816edf92

SEGMENTAL PERFORMANCE AND FINANCIAL REVIEW

Click on, or paste the following link into your web browser, to view our Segmental performance and Financial review for the year ended 31 December 2020 https://irpages2.eqs.com/download/companies/240395a/Other%20Information/ 2020_Segmental_performance_and_Financial_review.pdf

GROUP FINANCIAL STATEMENTS

Click on, or paste the following link into your web browser, to view the Group financial statements of Petrofac Limited for the year ended 31 December 2020 https://irpages2.eqs.com/download/companies/240395a/Other%20Information/2020_Financial_statements.pdf

The attached documents are extracts from the Group's Annual Report and Accounts for the year ended 31 December 2020. Page number references refer to the full Annual Report when available. ENDS

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