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Image courtesy of Petrofac.

Services player Petrofac issued a warning Monday as its 2014 net profits slipped to the bottom range of its guidance and the company slashed 2015 profit estimates by over $300 million.

The company said it will meet its 2014 net profit guidance but expects profits to be on the “lower end” of its $580 million to $600 million estimate.

Petrofac said it still had a “strong” order intake of $10 billion and a record $21 billion backlog for 2014.

Slumping oil prices and lower delivery expectations due to delays and operational issues will severely impact the company’s 2015 profit estimates.

The company now expects to book about $500 million in net profits during 2015, significantly lower than its initial estimate of $862 million.

The revision wiped out over $1.56 billion of the company’s market value and could prompt a ratings downgrade, Reuters said.

UK-based Petrofac said it will likely book a loss on the Total operated Laggan-Tormore project in Shetland for 2014 and no longer anticipates any margin on the project for 2015.

Losses tied to Laggan-Tomore are expected to be “partially mitigated by the positive outcome in respect of a small number of tax exposures elsewhere in the contract portfolio,” Petrofac said.

“This has been a difficult period for Petrofac and the industry…We have faced these difficulties and have taken robust action to address them and believe this leaves us on a surer footing for the future,” Petrofac CEO Ayman Asfari.