Petrofac shares as it lays out plan to reverse cash-flow fears
![](https://www.cityam.com/wp-content/uploads/2020/08/1251733453.jpg?w=742)
Petrofac, the struggling oil services provider, has today announced it will be forced to sell assets after warning on cash flow – sending shares sharply northward this morning.
The group has struggled with a series of scandals and profit warnings over the past five years. Since 2018, its revenue has fallen by more than half and Petrofac has racked up large operating losses. These losses have weighed on the stock. It is down more than 96 per cent over the past five years.
Petrofac said today it has added Aidan de Brunner to the company’s board as it “pivots to the execution of the new contracts won in 2023.” Aidan will join as a non-executive director, bringing 20 years of experience in contract management to the group following the firm’s “most successful period for new awards in many years.”
However, to help support execution, the company has said it is “examining a range of strategic and financial options with the objective of materially strengthening the company’s balance sheet.”
These options could include asset sales and partnerships with peers. It is also “exploring potential new financial options across all its classes of capital.”
The moves saw shares up significantly in trading this morning.
The company has also warned today that due to the timing of cash payments from ongoing projects, it would now miss cash flow guidance given earlier in the year.
Group chief Treq Kawash said: “Petrofac’s underlying business is robust with material growth in our backlog from approximately $5.5bn in new awards in new and traditional energy this year. This demonstrates our competitive strength and long-term potential. To deliver on this, we are working hard to address short-term liquidity challenges and strengthen the financial position of the group.”