Statement on SFO investigation
Following the announcements issued on Friday 24th September and Monday 27th September 2021, Petrofac Limited (the “Company” or “Petrofac”) announces that the sentencing hearing at Southwark Crown Court commenced today and sentencing of the Company for historic offences under Section 7 of the UK Bribery Act 2010 is scheduled to take place on Monday 4th October 2021.
As announced on 24th September, the penalty will be determined at the sole discretion of the Court. The Joint Submission to the Court by the Company and the SFO details a potential penalty of US$240 million prior to the application of any adjustment to the level of fine (“step back”). The Company has made a submission to the Court for a substantial reduction based on alternative approaches to sentencing and its ability to pay. The Court may also take into account the SFO’s recognition that Petrofac is a changed company with transformed leadership, personnel, compliance and assurance processes.
The Company will make a further announcement following sentencing.
Petrofac is currently undertaking a comprehensive review of refinancing options to create a sustainable, long-term capital structure with appropriate leverage, liquidity and duration to support the delivery of the Company’s strategic plan. This process includes the assessment of all available options including but not limited to revolving credit facilities with the Company’s lending banks, accessing public debt capital markets, and additional equity capital, to best position the Company to take advantage of its strong presence in its attractive target markets.
Petrofac has a well-developed, comprehensive compliance and governance regime. This is supported by a dedicated compliance and investigations team, new systems and technologies, mandatory training and a company culture based on ethical business conduct and transparency. Its compliance regime is championed, supported, and overseen at local, divisional and Board level, and supplemented by regular independent audit.