UK's Petrofac plummets as half-yearly losses surge (updated)

Petrofac

30/09/2024 09:15

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       Sept 30 (Reuters) - Shares of British oilfield services
provider Petrofac  PFC.L  dropped 33% on Monday after the
company reported bigger half-yearly losses amid difficulties in
closing legacy contracts in its biggest unit.
    After a boom in orders due to high oil prices in 2022, the
firm has been struggling with a string of profit warnings
related to legacy contracts and payment delays at its largest
division, Engineering & Construction (E&C), in recent months.
    While the Jersey-based company anticipates increased
operating activity in E&C compared to last year, it is still
expected to remain below scale.
    Shares of the FTSE small-cap firm were at a near 4-month low
and have fallen about 66% this year.
    Last week, Petrofac reached an in-principle agreement with
some key stakeholders to restructure its finances for a
much-needed equity raise.
    The company reported its net loss widened to $208 million in
the six months ended June 30 from $141 million in the same
period last year.

 (Reporting by Yamini Kalia in Bengaluru; Editing by Savio
D'Souza and Abinaya Vijayaraghavan)
 ((Yamini.Kalia@thomsonreuters.com;))