Petrofac restructuring approved by courts as it looks to ‘healthy pipeline of future opportunities’

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Petrofac restructuring approved by courts as it looks to ‘healthy pipeline of future opportunities’

Aberdeen-based oil services firm Petrofac has had its restructuring plan approved by the High Court of England and Wales. The business has been pursuing a cost-cutting restructuring plan with lenders in order to bring its books back into the black and has now received the green light. In February, Petrofac announced plans to raise $355 […]

Aberdeen-based oil services firm Petrofac has had its restructuring plan approved by the High Court of England and Wales.

The business has been pursuing a cost-cutting restructuring plan with lenders in order to bring its books back into the black and has now received the green light.

In February, Petrofac announced plans to raise $355 million (£280m) in funding as part of the deal that has further reduced shareholder allocation.

Existing shareholders were to be allocated 2.2% firm’s total share capital as part of the deal, a downgrade compared to the 2.5% outlined in plans announced just before Christmas.

Petrofac appeared in court on 30 April and witnessed “overwhelming support of shareholders and the majority of creditor classes,” it claimed in a stock market update.

The firm’s chief executive, Tareq Kawash said: “The sanctioning of the restructuring plan marks a significant milestone for our group.

“Implementation of the plan will allow our talented team, clients, suppliers, shareholders and investors, to move forward with renewed confidence, bolstered by a sustainable financial platform, a robust backlog of existing contracts, and a healthy pipeline of future opportunities.”

The firm has faced financial hardship in recent years as it became entangled in a corruption scandal, as the UK’s Serious Fraud Office (SFO) charged two former Petrofac executives with paying bribes in the United Arab Emirates in 2024.

Additionally, Petrofac’s books have not been as healthy as they once were, and share prices slumped following the COVD pandemic.

A decision to defer publishing its audited annual results for 2024 has also resulted the halt of shares trading for the company as well, adding to its list of concerns.

This forms an ongoing saga of financial uncertainty for the services giant that has been ongoing since 2023.

However, now that a restructuring plan has been approved, Petrofac chairman René Medori appears confident.

He said: “Together with the support displayed by shareholders, lenders, investors and key clients, the High Court’s sanctioning of the Restructuring Plan confirms it is the best path forward, and follows enormous efforts to develop and implement it over the last 18 months.”

Now that the process has been resolved, non-executive director Aidan de Brunner will step down.

An offshore worker carrying out inspection duties.

At the time of Brunner’s appointment in 2023, Médori said: “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.”

The outgoing Petrofac non-executive director is set to depart the services firm at the end of May this year.

Following the suspension of share trading, Petrofac announced that its asset solutions division had built up $500 million in contracts in the first quarter of 2025.

However, Ashley Kelty, Panmure Liberum director and oil and gas research analyst, told Energy Voice at the time: “It’s good news that the backlog is getting bigger and they’re winning new work.

“However, from an equity perspective it still looks awful as the restructuring will pretty much wipe out current equity holders.”

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