Petrofac in talks over finances as it seeks contract guarantees

Petrofac said in an update on Friday that negotiations over tis finances were ongoing, as it remained in discussions with its lenders to restructure its debt, aiming for a substantial portion of the debt to be converted into equity.

The London-listed firm said talks were also persisting with potential investors and major shareholders regarding further investment opportunities.

At the same time, negotiations are underway with prospective buyers for the sale of non-core assets, aligning with recent announcements.

The company’s management and board said they were committed to managing payment obligations while seeking a solution allowing for the guarantees required for recent contract awards, aiming to establish an appropriate capital structure and liquidity to support the strength of its $8bn backlog.

“While the company continues to face challenges in securing new performance guarantees, it is progressing discussions with credit providers and clients to find solutions with respect to the guarantees required for its recent contract awards,” the board said.

At 0806 BST, shares in Petrofac were down 25.7% at 24.76p.

Reporting by Josh White for Sharecast.com.