Petrofac, the global energy services giant, has announced a comprehensive financial restructuring plan that will unlock more than £250 million in new funding, securing its long-term future and marking what the company calls a “new beginning”.
The company has entered into a binding agreement, known as the “Lock-Up Agreement,” with key financial creditors on the terms of this restructuring.
This deal, announced just days before Christmas, puts an end to Petrofac’s long-running financial worries stemming from a share price collapse a year ago.
The new funding package consists of $325 million (£258.68 million), comprising $131 million (£104.27 million) in new debt and $194 million (£154.41 million) in new equity.
This influx of capital is expected to significantly strengthen Petrofac’s financial position and enable the company to move forward with confidence. René Médori, Chairman of Petrofac, expressed his satisfaction with the deal. He commented:
“We are pleased to have announced today a deal with creditors and other stakeholders which will materially strengthen Petrofac’s financial position. The financial restructuring will mark a new beginning for Petrofac.”
Tareq Kawash, Group Chief Executive, emphasised the positive impact of this agreement on the company’s future, saying,: “The agreement announced today will provide a sustainable financial structure that will support our business plan and allow the Group to move forward with confidence.”
The restructuring is expected to be completed in Q1 of 2025, subject to all requisite approvals and satisfaction of conditions.
This deal not only provides immediate financial relief but also positions Petrofac for future growth and success in the energy services sector. As part of this transition, Médori has announced his intention to step down from his role, stating: “I look forward to overseeing the conclusion of this process with a view to transitioning my board duties to a new chairperson in 2025.”
