UPDATE: Petrofac raises GBP200 million in placing to pay fraud fine

(Alliance News) - Petrofac Ltd on Tuesday confirmed it raised GBP199.6 million, with some of the ...

Alliance News 26 October, 2021 | 7:36PM
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(Alliance News) - Petrofac Ltd on Tuesday confirmed it raised GBP199.6 million, with some of the cash going towards paying a GBP77 million penalty imposed by the Crown Court in relation to a Serious Fraud Office investigation.

The London-based oilfield services provider placed 173.6 million shares at 115 pence each.

The net proceeds of the equity raise, together with other components of the refinancing plan, will be used to reduce indebtedness and to pay the GBP77 million penalty.

In May 2017 the regulator launched an investigation into Petrofac in relation to seven historic offences of failing to prevent former Petrofac employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015. All employees involved in the charges have left the business and the court acknowledged Petrofac's corporate reform through the transformation of the company's leadership, personnel, compliance and assurance processes. The investigation concluded on October 4.

Also on Tuesday, Petrofac said revenue for the six months to June 30 totalled USD1.60 billion, down from USD2.10 billion posted for the first half of 2020. Its net loss widened to USD86 million from USD78 million year-on-year.

Petrofac shares closed 9.6% lower at 142.70 pence each in London on Tuesday.

By Evelina Grecenko; evelinagrecenko@alliancenews.com; Updated by Eric Cunha; ericcunha@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Petrofac Ltd 111.40 -

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