Published by Global Banking and Finance Review
Posted on December 22, 2024
(Reuters) - Oilfield services provider Petrofac said on Sunday that it has entered into a binding agreement with key financial creditors on the terms of a comprehensive restructuring.
The plan includes $325 million in new funding and the conversion of approximately $772 million of existing debt into equity, the company said.
"We have made good progress in closing out our legacy portfolio of contracts, our new projects are progressing well, we have a refreshed strategy focused on our strengths, with enhanced bidding discipline and project governance," Group Chief Executive Tareq Kawash said in a statement.
In September, Petrofac reached an in-principle agreement with some of its key stakeholders for a financial restructuring that included raising funds through equity financing and conversion of most of its debt into equity.
The London-listed firm reported bigger half-yearly losses in September amid difficulties in closing legacy contracts in its biggest unit. 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.
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, in recent months. The company had previously said it was in discussions to sell some non-core assets.
(Reporting by Pretish M J in Bengaluru; Editing by Leslie Adler and Lisa Shumaker)
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