3rd Nov 2020 13:43
Petrofac Ltd - oilfield services company headquartered in Jersey and with eight operational centres including in Aberdeen, Delhi, and Mumbai - Completes sale of remaining 51% interest in Mexican upstream IES operations, including Santuario, Magallanes and Arenque, to Perenco Energies International Ltd. Perenco now 100% owner of Mexico operations. This means Petrofac has largely completed its programme to dispose of non-core assets. Gross cash generation on completion is USD82.7 million, with Petrofac having received USD120.2 million from the sale so far. Says further consideration of up to USD155.8 million possible, consisting of USD80.2 million that is disputed by Perenco. Petrofac says it will initiate formal legal proceedings against Perenco to recover the balance. An additional USD75.6 million of consideration is contingent on future milestones, such as field development. Sale proceeds will be used to reduce Petrofac's debt.
"The uncertainty surrounding the Mexican energy reform programme and the outcome of other events is expected to result in a material non-cash impairment charge to be recognised at December 31, 2020. This exceptional impairment charge will take into account management's assessment of the fair value of future consideration receivable," Petrofac adds.
Current stock price: 125.55 pence; up 3.8% on Tuesday
Year-to-date change: down 67%
By Anna Farley; [email protected]
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