Petrofac Limited Announces Debt Restructuring and Strategic Discussions to Strengthen Financial Position

Petrofac Limited has disclosed ongoing discussions aimed at restructuring its debt and exploring strategic and financial options to enhance the company's financial stability. In the midst of these negotiations, the energy service provider is in talks with lenders to convert a significant portion of its debt into equity. Concurrently, it is engaging with potential investors and key shareholders regarding additional investments, as well as negotiating the sale of non-core assets.

The company's management and board are diligently working to manage payment obligations and secure necessary guarantees for recent contract awards. These efforts aim to ensure Petrofac has a robust capital structure and ample liquidity to support its US$8 billion project backlog. Despite facing challenges in obtaining new performance guarantees, Petrofac is actively seeking solutions with credit providers and clients.

Petrofac has assured stakeholders that the discussions are progressing and has promised to provide further updates as the situation evolves. This move is seen as a critical step for Petrofac in navigating its current financial challenges while maintaining its commitment to delivering significant projects across the energy sector.