Shares in Petrofac traded higher this morning despite the company slashing its dividend and reporting a fall in earnings.
The oil and gas services company has been hit by a reduction in demand from its exploration and drilling customers on the back of lower oil prices.
However, shares were up by around 2.4% this morning as its order book appeared more resilient than expected.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 10.8% to $323m for the first half of the year. Revenues sank by around 20% to around $3.1bn.
Petrofac said it was cutting the dividend by 42% to 12.7 cents per share as part of measures to deliver a “sustainable reduction in net debt.”
“We are committed to maintaining a strong balance sheet and credit rating to ensure that the group remains competitive in current markets,” said the company in a statement.
Petrofac blamed weaker commodity prices for a squeeze on capital spending that was in turn hurting its own cash flows.
However, the market was cheered by Petrofac´s order intake and backlog of orders.