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Petrofac shares slump as Abu Dhabi terminates US$1.65bn Dalma contract

The contract was awarded as recently as February, and, now the Abu Dhabi National Oil Company has terminated it.

Petrofac shares slump as Abu Dhabi terminates US$1.65bn Dalma contract

Petrofac Limited (LON:PFC) shares dropped in Thursday morning’s deals as it received a project termination notice from the Abu Dhabi National Oil Company (ADNOC).

The termination notice was for two recently awarded contracts for the Dalma Gas Development Project, awarded in February to the Petrofac Emirates unit. The project had been valued at US$1.65bn.

READ: Petrofac cancels US$85mln dividend

It said that its remaining order backlog amounted to around US$7bn, and, it continues tendering for major contracts in Abu Dhabi – but, anticipates delays in project awards.

Meanwhile, it added: “Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.”

Petrofac shares fell around 25p or 14% to change hands at 159.58p.

Quick facts: Petrofac Limited

Price: 166.5 GBX

LSE:PFC
Market: LSE
Market Cap: £575.94 m
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