Petrofac considers asset sales, seeks to strengthen balance sheet and short-term liquidity - Upstream Online
Petrofac considers asset sales, seeks to strengthen balance sheet and short-term liquidity | Upstream Online
Petrofac’s share price traded about 30% higher on Monday after it said it is considering the sale of “non-core” assets and talking with financial investors about taking non-controlling stakes in other parts of its business portfolio to strengthen its balance sheet.
The oil services provider suggested these transactions would “result in a material improvement on the balance sheet” and said it “is exploring potential new financial options across all its classes of capital”.
“The board is examining a range of strategic and financial options with the objective of materially strengthening the company’s balance sheet, securing bank guarantees and improving short-term liquidity,” Petrofac said.
Petrofac’s shares traded up nearly 34% at £22.72 ($28.78) on Monday, compared with the Friday closing price, after the company announced the moves.
Even with the intraday stock jump, however, the company’s shares remained about 69% lower year to date.
Petrofac also said Aidan de Brunner has joined the company as a non-executive director. He brings more than 20 years of board, management, investment and financial advisory experience.
“As the group pivots to the execution of the new contracts won in 2023, Aidan will commit a significant portion of his time to supporting the board for a limited period,” Petrofac said.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
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