Petrofac has warned it will have to sell assets due to cash flow issues after shares plummeted by 65% in the past month.
The company has said it's "examining a range of strategic and financial options" to balance the books, including the sale of "non-core assets".
Since 2018, the energy services provider has racked up operating losses while revenue has halved.
Petrofac also said that financial investors would take non-controlling position in certain other components of the business portfolio, after announcing Aidan de Brunner joined the Company as a Non-Executive Director.
Group Chief Executive Tareq Kawash commented: "Petrofac’s underlying business is robust with material growth in our backlog from approximately $5.5b (£4.35m) 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. I am grateful for the continued efforts of our people, and the support of our clients and other stakeholders, as we work to deliver a positive future for Petrofac."
The Chairman René Médori commented: "The Board is fully focused on reviewing a range of strategic and financial options with the objectives of strengthening the Group’s balance sheet and protecting the interests of all our stakeholders. The appointment of Aidan de Brunner reinforces the skills and experience of the Board in support of these efforts."
Petrofac will issue its pre-close trading update on 20 December 2023.
FTSE 100
The UK's flagship share index, the FTSE100, was down 32-points at 7,480 shortly after opening this morning.
Meanwhile, Brent crude futures were up 0.26% at $78.23 a barrel this morning.
Companies reporting today
- Ashtead - Q2 results
- Balfour Beatty - Q4 trading statement
- discoverIE Group - Half year results
- Moonpig Group - Half year results
- SSP Group - Full year results
- Victrex - Full year results