Petrofac
Energy services company Petrofac is to delay the publication of its full-year results and suspend trading as financial pressure mounts.
The London-listed contractor said Monday its shares will be temporarily suspended on May 1 until its 2023 results are made public, expected by the end of May.
“This development comes as the company continues to manage its payment obligations to preserve liquidity whilst progressing the other components of the restructuring with other stakeholders, Petrofac in a trading update, adding that it may also have to convert a significant proportion of its existing debt to equity.
As part of its ongoing financial restructuring, an ad-hoc group of senior secured noteholders has offered to provide further credit of up to $300m, comprising $200m of new funds and $100m of credit support to help secure performance guarantees for certain of its existing contracts.
This non-binding proposal is dependent upon – among other things – Petrofac securing these performance guarantees, and would require the conversion of a significant proportion of the group’s existing debt to equity.
“The company is in active discussions with credit providers to obtain the required guarantees, which would also release over $200m of collateral and retentions, and will provide an update on the outcome of those discussions as appropriate,” Petrofac added.
Petrofac, with a backlog of about $8bn, has been grappling with payment delays and cost overruns at its engineering and construction arm on contracts secured in 2023. A further $130m loss is expected to be recognised in this division for 2023.
The company’s net debt was $583m at the end of 2023.
