Britain’s Petrofac shares fined for fraud

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Shares of UK oil services company Petrofac fell more than 20% this morning after the company announced $ 275 million (£ 180 million) fundraising from shareholders to settle a Corruption sanction of the Serious Fraud Office (SFO).

The capital increase is part of a larger refinancing plan, the proceeds of which would be used to pay the $ 106 million penalty imposed as part of the SFO’s investigation, as well as to repay existing debt. By mid-morning, Petrofac shares fell 21% to 124.82p.

The Jersey-based petroleum service provider also published its results today for six months until the end of June. He reported a net loss of $ 86 million, largely reflecting the legal sanction.

The company said it was on track to achieve $ 250 million in cost savings in 2021 and that the trades and new rewards were as expected and continued to be affected by Covid-19.

Increase in contract awards

Petrofac insisted it is well positioned to take advantage of the expected increase in activity levels over the next few years. Awarding of contracts, he said, is expected to accelerate with a $ 46 billion bidding pipeline, including $ 7 billion in new energy, which is expected to be awarded. by December 2022.

The medium-term ambition of the company is to generate a turnover of 4 to 5 billion dollars, of which more than 20% comes from new energies, and profit margins before interest and taxes (EBIT) of the group. 6 to 8%.

Commenting on the latest figures, Sami Iskander, Group Managing Director, said: “Although the first half performance reflects the challenges of the market and Covid-19, we have continued to successfully deliver to our customers and improve our ability to delivery. Above all, the conclusion of the SFO survey allows us to focus on the future and unlock new opportunities – with an uncompromising approach to compliance and ethics that will always be at the heart of how we operate.

“This rigorous approach to governance is part of our environmental and social agenda and is essential to our future success,” he added.

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