REG-Petrofac Limited Petrofac Limited: Restructuring and business update

PetrofacAnnouncement

01/08/2025 07:00

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   Petrofac Limited ( PFC)
   Petrofac Limited: Restructuring and business update

   01-Aug-2025 / 07:00 GMT/BST

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       PETROFAC LIMITED

                       Restructuring and business update

   Petrofac today issues an update on its Restructuring Plan and the progress
   of the business in the six months ending 30 June 2025.

   Restructuring update

     • The Group announces the extension of the original Lock-Up Agreement.
       The Group’s bondholders, investors and those creditors party to the
       Lock-Up Agreement have reinforced their support for the Group by
       committing to an extension until 30 November 2025.
     • The Board has identified and is actively progressing a number of
       routes to deliver the Restructuring, including through a Plan that
       addresses the narrow grounds on which the Court of Appeal issued its
       judgment on 1 July 2025. The Board welcomes the extension of the
       Lock-Up Agreement and the ongoing support of key clients which provide
       the Group with a stable platform to continue to pursue the
       Restructuring.
     • Additionally, the Group will today apply to the Supreme Court for
       leave to appeal the judgment handed down by the Court of Appeal on 1
       July.

   First Half Business highlights

     • All business units continued to execute contracts despite the  Group’s
       financial constraints:

          ◦ Progress was maintained on the current ADNOC and TenneT
            contracts;
          ◦ Legacy contracts continued to be closed out and now represent a
            small proportion of E&C’s contract backlog.

     • First Half Business Performance Revenue and EBIT are expected to be
       significantly ahead of the prior year despite financial constraints
       impacting project costs and schedules.   
     • E&C secured two major new contracts with ADNOC:

          ◦ US$330 million EPC contract for new gas compressor plant at the
            Habshan complex;
          ◦ EPC Management Services contract for a US$1.2 billion project to
            expand gas production facilities on Das Island.

     • Asset Solutions secured around US$500 million new orders.
     • Group backlog(1)(3) was US$6.7 billion at 30 June, broadly in line
       with the 2024 year-end.
     • The Group has been able to maintain liquidity to support its
       operations, reflecting,

          ◦ suspension of debt service payments;
          ◦ commercial settlements and associated collections secured as part
            of the close out of legacy contracts;
          ◦ supportive supply chain and customer relationships, and careful
            cash flow management.

     • US$40 million of net liquidity(2)(3) was generated in the First Half,
       increasing Group’s net liquidity to US$192 million at 30 June 2025 (31
       December 2024: US$152 million).
     • Group’s pipeline remains strong, largely focused on the MENA region
       and ETP opportunities.

   Tareq Kawash, Petrofac’s Group Chief Executive, commented:

   “The agreement of stakeholders to extend the Lock-Up demonstrates their
   support for the work underway to address the narrow grounds on which the
   Court of Appeal upheld the challenge to our Restructuring Plan. While the
   need for the balance sheet restructuring remains clear, the commitments
   formalised today give me confidence that we can deliver a successful
   outcome.

   “Petrofac’s operational capability remains intact, and the business
   continues to deliver for its clients. We have secured new contract awards
   and have a strong pipeline of future opportunities. This is in no small
   part thanks to the dedication of our people, and the continued support of
   our clients and suppliers. Following a prolonged period of challenge for
   the Group, I am more focused than ever on delivering the best possible
   outcome for all stakeholders.”

   ENDS

    1. Backlog consists of the estimated revenue attributable to the
       uncompleted portion of E&C projects; and for the Asset Solutions
       division, the revenue attributable to the lesser of the remaining
       contract term and five years. 
    2. Net liquidity consisted of gross cash, less cash held in countries
       whose exchange controls restrict or delay remittance of these amounts
       to foreign countries, less cash held in jointly controlled consortium
       bank accounts, and less cash held in joint operation bank accounts
       which are generally available to meet the working capital requirements
       of these joint ventures but can only be made available to the Group
       for general corporate use with the agreement of the joint-venture
       partners.
    3. Full-Year 2024 balances unaudited.

    

    

   Disclaimer:

   This announcement contains  forward-looking  statements  relating  to  the
   business, financial performance and  results of Petrofac and the  industry
   in which Petrofac operates.  These statements may  be identified by  words
   such as "expect", "believe",  "estimate", "plan", "target", or  "forecast"
   and similar expressions, or by their context. These statements are made on
   the basis  of current  knowledge  and assumptions  and involve  risks  and
   uncertainties. Various  factors   could  cause   actual  future   results,
   performance or events to differ  materially from those expressed in  these
   statements  and  neither Petrofac  nor   any  other  person  accepts   any
   responsibility  for  the  accuracy  of  the  opinions  expressed  in  this
   presentation or the  underlying assumptions. No  obligation is assumed  to
   update any forward-looking statements.

    

    

    

   For further information contact:

   Petrofac Limited

   +44 (0) 207 811 4900

    

   David Boyd, Investor Relations

    1 David.boyd@petrofac.com 

    

   Sophie Reid, Group Director of Communications

    2 Sophie.reid@petrofac.com

    

   Teneo (for Petrofac)

   +44 (0) 207 353 4200

   petrofac@teneo.com

    

    

    

   NOTES TO EDITORS

    

   Petrofac

    

   Petrofac is  a  leading  international  service  provider  to  the  energy
   industry, with a diverse  client portfolio including  many of the  world's
   leading energy companies.

    

   Petrofac designs,  builds,  manages  and  maintains  oil,  gas,  refining,
   petrochemicals and  renewable energy  infrastructure.  Our purpose  is  to
   enable our clients  to meet the  world's evolving energy  needs. Our  four
   values -  driven,  agile,  respectful and  open  -  are at  the  heart  of
   everything we do.

    

   Petrofac's core markets  are in the  Middle East and  North Africa  (MENA)
   region and the UK  North Sea, where  we have built  a long and  successful
   track record of safe, reliable and innovative execution, underpinned by  a
   cost effective and local delivery model with a strong focus on  in-country
   value. We operate in several  other significant markets, including  India,
   South East  Asia and  the United  States. We  have 7,300  employees  based
   across 31 offices globally.

    

   Petrofac is listed on the London Stock Exchange (symbol: PFC) trading in
   Petrofac shares is currently suspended pending publication of the Groups
   Full Year 2024 Audited Accounts.

    

   For additional information, please refer to the Petrofac website at
   www.petrofac.com

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   ISIN:           GB00B0H2K534
   Category Code:  MSCH
   TIDM:           PFC
   LEI Code:       2138004624W8CKCSJ177
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   397631
   EQS News ID:    2178042


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:David.boyd@petrofac.com
   2. mailto:Sophie.reid@petrofac.com


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