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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: 389.7 GBX

LSE:PFC
Market: LSE
Market Cap: £1.35 billion
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