Petrofac Limited

Update on review of strategic and financial options

Petrofac Limited ( PFC) Petrofac Limited: Update on review of strategic and financial options 05-March-2024 / 07:08 GMT/BST 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.