PETROFAC, which employs about 4,000 in Scotland, achieved an underlying profit of $320 million (£260m) last year, after facing further costly challenges in the first half over a contract for work on Shetland.

The oil and gas engineering giant booked a $101m charge in respect of the contract to build a terminal to process gas from the Laggan Tormore field for Total taking total losses on the job to around £500m. The terminal started operating in February last year, about 18 months behind the original schedule.

Petrofac has highlighted the impact of low productivity and bad weather on the project.

Yesterday chief executive Ayman Asfari noted Petrofac had record revenues of $7.8 billion in 2016 and achieved significant cost reductions.

He noted: “Whilst the market remains competitive, bidding activity has increased in recent months.”

Petrofac has been “right-sized” and has a good pipeline of opportunities. The Jersey-incorporated firm made $9m underlying profit in 2015.