viewPetrofac Limited

Petrofac acquires US competitor, wins US$120mln contracts

The FTSE 250-listed firm acquired the American peer, based in the Permian basin, to enter the US onshore operation and maintenance market

Petrofac Limited - Petrofac acquires US competitor, receives US$120mln contracts
Petrofac will pay an initial US$22mln followed by deferred instalments

Petrofac Limited (LON:PFC) has agreed the acquisition of US-based shale specialist W&W Energy Services top off a period where it won contracts worth US$120mln.

The oilfield services company was awarded a first project in Malaysia and won contracts extensions in the North Sea as well as a new three-year project in the region.

READ: Petrofac describes “solid operational performance” in first half

The FTSE 250-listed outfit will spend an initial US$22mln to acquire its American peer, based in the shale Permian basin, to enter the US onshore operation and maintenance market.

Petrofac will also pay deferred instalments based on W&W’s financial performance over the three years to December 2021.

In the financial year to 31 December, W&W had underlying earnings of US$6.6mln, while at the completion of the agreement its net debt was US$2.8mln.

“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,” said chief executive John Pearson.

Petrofac's shares were down 1% to 391.1p in early trading.

Quick facts: Petrofac Limited

Price: 106.5 GBX

Market: LSE
Market Cap: £368.4 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


GinsGlobal Managing Director sees Healthcare and Healthcare innovation as...

HANetf and GinsGlobal Index Funds' Managing Director Anthony Ginsberg joined Steve Darling from Proactive to share details about the success of their Healthcare Innovations ETF. Ginsberg discusses how COVID-19 had made a direct impact on that fund, especially in the telemedicine...

1 day ago

2 min read