Energy services company Petrofac said on Friday it was still struggling to secure performance guarantees for new contracts and that it was in negotiations with lenders about restructuring its debt in return for equity.
The contractor saw its shares dive on the news by more than 20% in Friday’s early deals.
Petrofac has been grappling with payment delays and cost overruns at its engineering and construction arm on contracts secured in 2023.
The London-listed firm with a backlog of about $8bn said in a market update that it also continues to explore the sale of its non-core assets and remains in discussions with major shareholders to further invest in the company.
“All options remain under consideration,” Petrofac said, adding: “The discussions with lenders and other stakeholders continue at pace and further announcements will be made as appropriate.”
Petrofac is set to release its 2023 earnings numbers later in April. The company’s net debt was $584 million as of June 30.
