Petrofac Limited (LSE:PFC), the Aberdeen-based energy services company, has filed to appoint administrators to its parent company after a major offshore wind contract cancellation derailed its financial restructuring.
The move follows Dutch grid operator TenneT’s decision to end a key 2 GW project, which Petrofac said rendered its recovery plan “no longer deliverable.”
The administration affects only Petrofac Limited, the group’s holding company, while its operating divisions, including the North Sea business, continue to trade.
The company said it is working with creditors on potential restructuring and merger or acquisition options, and that administrators will help preserve operations and value.
A spokesperson said Petrofac remains focused on “delivering the best possible outcome” for its ongoing contracts and employees.
The UK government confirmed that Petrofac’s domestic arm is unaffected and continues to operate normally, describing the difficulties as stemming from “longstanding global issues.”
Petrofac’s financial struggles date back to corruption investigations that resulted in heavy fines and debt pressures. Despite setbacks, it has continued winning contracts, including a $50 million renewal with Ithaca Energy.