Petrofac cures contract default and announces extension to forbearance agreement

Agreement with key EPC customer 

Petrofac today announces that it has reached an alternative agreement with a key customer with respect to the performance guarantee requirements under that contract.  

The agreement cures the default notice received from that customer, which required a performance guarantee to be posted by 16 June 2024, as outlined in the company’s 2023 accounts.  

The Company continues to require performance guarantees for certain of its other recently awarded contracts. Further announcements will be made as appropriate.

Forbearance agreement with noteholders

The Group has extended its existing forbearance agreement in respect of the non-payment of the interest coupon on its senior secured notes from 25 July to 23 August 2024.

The forbearance agreement is entered into by an ad hoc group of noteholders representing approximately 47% of the outstanding senior secured notes and certain other acceding noteholders. It provides assurance that these noteholders will not take any action in respect of the non-payment of the coupon until at least 23 August 2024, providing additional time for the Group’s financial restructuring to be progressed. 

Further announcements will be made as appropriate.