REG-Petrofac Limited Petrofac Limited: Update on review of strategic and financial options

PetrofacAnnouncement

05/03/2024 07:15

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   Petrofac Limited ( PFC)
   Petrofac Limited: Update on review of strategic and financial options

   05-March-2024 / 07:08 GMT/BST

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   Press Release

    

    

    

   5 March 2024

    

              Update on review of strategic and financial options

    

   Petrofac today provides an update with respect to its review of  strategic
   and financial options, further to its announcements on 4 December 2023 and
   20 December 2023.  This review,  which is  ongoing, has  the objective  of
   materially strengthening the Company’s balance sheet, improving short-term
   liquidity and securing bank guarantees.

    

   Active discussions are progressing with Petrofac’s stakeholders  including
   its lending  group, comprising  both bondholders  and lending  banks,  and
   other capital providers. Furthermore, as announced on 4 December, Petrofac
   is making progress in exploring the sale of non-core assets.

    

   Taken together,  these  actions  are  being undertaken  with  the  aim  of
   managing the  Group’s payment  obligations,  supporting the  provision  of
   guarantees  and  ensuring  that  Petrofac  has  the  appropriate   capital
   structure and liquidity to support the strength of its backlog and  future
   business prospects.

    

   The provision of  performance guarantees and  advanced payment  guarantees
   remains a key driver  of near term cashflow  for the Company, by  enabling
   the receipts of advance payments,  releasing cash collateral and  reducing
   future collateral  requirements.  As previously  announced,  Petrofac  was
   successful in obtaining the performance guarantees for the first  contract
   award under  the TenneT  framework  agreement and  for the  ADNOC  Habshan
   contract. 

    

   Negotiations continue with a broad set of credit providers with a view  to
   obtaining the guarantees contractually required for other recently awarded
   contracts. In addition, discussions remain ongoing with clients around the
   required scale and timing of performance guarantees.

    

   The Company is working to  conclude discussions with these  counterparties
   as swiftly as possible. Further announcements will be made as appropriate.

    

   Operationally, the Group  continues to make  good progress with  contracts
   awarded in 2023,  which increased the  backlog of the  Group to over  US$8
   billion. It  is  also making  good  progress  in closing  out  its  legacy
   portfolio and unwinding  historical working capital.  It has continued  to
   maintain liquidity above its financial  covenant and will provide  further
   details on its operational and financial performance within the Full  Year
   Results announcement in April.

    

   Commenting, Group Chief Executive, Tareq Kawash said:

    

   “Petrofac continues  to deliver  well for  our clients,  evidenced by  the
   growth in our  backlog, on  which very good  progress is  being made.  Our
   significant  order  book,   which  now  stands   at  over  US$8   billion,
   demonstrates the strength of our  proposition to customers and  Petrofac’s
   long-term potential. To deliver on this opportunity and position  Petrofac
   for the  future, we  are focused  on plans  to materially  strengthen  the
   financial position  of the  Group.  This work  continues  apace and  I  am
   grateful for the continued efforts of  our people, and the support of  our
   clients and other stakeholders.”

    

    

   ENDS

    

   For further information contact:

    

   Petrofac Limited

   +44 (0) 207 811 4900

    

   James Boothroyd, Head of Investor Relations

    1 James.boothroyd@petrofac.com

    

   Sophie Reid, Group Director of Communications

    2 Sophie.reid@petrofac.com

    

   Teneo (for Petrofac):

   +44 (0) 207 353 4200

    3 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 8,500  employees  based
   across 31 offices globally.

    

   Petrofac is quoted on the London Stock Exchange (symbol: PFC).

    

   For additional  information,  please  refer to  the  Petrofac  website  at
    4 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.

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   ISIN:          GB00B0H2K534
   Category Code: MSCM
   TIDM:          PFC
   LEI Code:      2138004624W8CKCSJ177
   Sequence No.:  307536
   EQS News ID:   1851177


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:James.boothroyd@petrofac.com
   2. mailto:Sophie.reid@petrofac.com
   3. mailto:petrofac@teneo.com
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=9fe21fdf68d48cc06116e9fe9587a1c8&application_id=1851177&site_id=reuters9&application_name=news


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