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Acquisition of W&W Energy Services

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RNS Number : 9600T
Petrofac Limited
20 November 2019
 

Press Release

 

 

20 November 2019

 

ACQUISITION OF W&W ENERGY SERVICES

 

Petrofac Limited ("Petrofac") announces it has signed a Sale and Purchase Agreement with the shareholders of W&W Energy Services ("W&W") to acquire an entry-level position in the US onshore Operations and Maintenance market.

 

W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin, the world's largest producing basin. This bolt-on acquisition is in line with Petrofac's stated strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.

 

Transaction consideration comprises firm and deferred cash payments, aggregating to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac will pay an initial cash consideration of US$22 million on completion. Deferred true-up and earn-out payments will be paid based on W&W's financial performance over the three-year period ended 31 December 2021. 

 

John Pearson, Chief Operating Officer, Engineering and Production Services, said: "This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W's footprint and strong local brand with Petrofac's Engineering and Modifications capability and global track record can unlock growth."

 

NOTES

 

1)   W&W's unaudited EBITDA for the financial year ended 31 December 2018 was US$6.6 million.

 

2)   At completion, W&W's net debt was US$2.8 million.

 

 

ENDS

 



 

For further information contact:

 

Petrofac Limited      

+44 (0) 207 811 4900

 

Jonathan Low, Head of Investor Relations

[email protected]

 

Aaron Clark, Investor Relations & Communications Manager

[email protected]

 

Sophie Reid, Regional Head of Marketing and Communications (West) 

[email protected] 

 

Tulchan Communications Group

+44 (0) 207 353 4200

[email protected]

 

Martin Robinson

 

LEI 2138004624W8CKCSJ177

 

NOTES TO EDITORS

 

Petrofac

 

Petrofac is a leading international service provider to the oil and gas production and processing industry, with a diverse client portfolio including many of the world's leading integrated, independent and national oil and gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC).

 

Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac's range of services meets its clients' needs across the full life cycle of oil and gas assets.

 

With around 11,250 employees, Petrofac operates out of seven strategically located operational centres, in Aberdeen, Sharjah, Abu Dhabi, Woking, Chennai, Mumbai and Kuala Lumpur and has a further 24 offices worldwide.

 

For additional information, please refer to the Petrofac website at www.petrofac.com


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Petrofac Limited

Price: 397.5

Market: LSE
Market Cap: £1.38 billion
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