Source: Sharecast
Petrofac reached an agreement in principle with the two creditors last month, over their claims relating to a troubled clean fuels project at a Thai Oil refinery.
Significant cost overruns at the project hit Petrofac hard, eventually prompting it to seek fresh funds and launch a company-wide restructuring at the end of last year.
The plans were sanctioned by the court in May, but Samsung E&A and Saipem appealed.
In a brief update on Wednesday, Petrofac said that having secured the agreement in principle last month, it was now "advancing discussions towards a binding agreement" with the two firms.
It continued: "As previously communicated, the group is focused on completing the rest of the restructuring in the shortest possible time and by the end of November. It continues to advance more than one route to implement the restructuring, each supporting the group’s operational capability and ongoing delivery."
Petrofac designs, builds, manages and maintains oil, gas, refining, petrochemicals and renewable infrastructure. Its core markets are the Middle East and North Africa as well as the North Sea.
It currently employs around 7,300 people globally.
Petrofac’s London-listed shares have been suspended since April, pending publication of its 2024 audited accounts.
Peel Hunt said: “Management aims to complete the restructuring by the end of November, and is exploring multiple implement routes.
“Crucially, these options are being shaped by funders and key creditors – not solely the company – and explicitly include scenarios in which existing shareholders may receive zero residual value.”
Peel Hunt’s rating and target price on Petrofac both remain under review.
