Petrofac

Petrofac is an oil and gas service, engineering and construction company with heavy exposure to the Middle East, North Africa and the North Sea. The order book grew by $5bn in 2009, with contracts for processing facilities in Algeria and Saudi Arabia. The company's track record in this area is excellent, having never failed to make a profit on a construction project. Further opportunities in Abu Dhabi and potentially Iraq mean that the explosive growth could continue. The North Sea service business has been a steady cash generator for a long time and this accumulated capital has been invested in a field development division which is soon to be demerged, with the intention of releasing value for current shareholders. The dividend should rise strongly along with profits over the forecast period.