Petrofac Limited (LSE:PFC) has announced its shares will be suspended from trading from next month due to delays publishing full-year results
Results are now expected to be published on May 31, with shares being suspended from May 1 as the company looks to secure new funding.
“The board and management are focused on arriving at a comprehensive refinancing solution as quickly as possible,” chairman René Médori commented in a statement.
An ad-hoc group of noteholders has offered to provide up to US$300 million, Petrofac said, dependent on performance guarantees for certain existing contracts.
“We are encouraged by the engagement with the ad-hoc group of noteholders, which we hope demonstrates momentum in this complex process,” Médori added.
Discussions are also ongoing with lenders over debt restructuring, with bond repayments due on May 15 not expected to be met.
As of December, net debt was US$583 million, while Petrofac said a US$130 million loss was expected in its engineering and construction division as costs from the Thai Oil Clean Fuels project look to be recouped.
Costs in Petrofac’s asset solutions wing will be higher due to an unnamed project, the statement added, dealing as much as a US$20 million blow to this division's earnings.
“Operational activity continues as expected and our teams are delivering well in the initial phases of the contracts awarded in 2023,” chief executive Tareq Kawash commented.
“Petrofac has a large order book of high-quality projects, strong market positions and compelling future opportunities.”
Shares fell 17.9% to 18.32p.