Petrofac, a London-listed firm, provided an update on its financial negotiations on Friday, stating that discussions with its lenders were ongoing. The company is aiming to restructure its debt with a substantial portion being converted into equity. Additionally, negotiations with potential investors and major shareholders for further investment opportunities are continuing.
Furthermore, Petrofac is in talks with prospective buyers for the sale of non-core assets to align with recent announcements. The company’s management and board are committed to managing payment obligations while seeking a solution that allows for the guarantees required for recent contract awards. This is in an effort to establish an appropriate capital structure and liquidity to support its impressive bn backlog.
Despite facing challenges in securing new performance guarantees, Petrofac is making progress with credit providers and clients to find solutions for the guarantees needed for recent contract awards. As a result, shares in Petrofac were down 25.7% at 24.76p at 0806 BST.
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