UK-listed contractor Petrofac has reported a widening net loss of in the first half of the year.
However, the firm is hoping to kick off a financial restructuring plan which it hops will improve liquidity as it services its £8billion order book.
The company's net loss from its business operations widened to $162million (£121million) for the first half of this year, compared with the loss of $136 million in the same period of last year, the company said Monday.
Petrofac's net debt, excluding net finance leases, rose to $622million as of 30 June 2024, against $583million as of 31 December 2023.
Chief executive Tareq Kawash said: “While this has impacted the Group’s performance during the first half, our new projects are performing well, and we continue to make progress in closing our legacy contracts in E&C [Engineering and Construction].
“The markets we operate in remain robust and we have secured a good level of new order intake in Asset Solutions.”
Petrofac is seeking a financial restructure to improve liquidity and secure bank guarantees to support current and future contracts, and is in talk with lenders to see some of the debt swapped for equity.
Kawash added: “The Board is grateful for the support of our stakeholders during this period and remains focused on delivering the best possible outcome for Petrofac and capitalise on the opportunities ahead of us.
“I am particularly proud of the continued dedication and commitment of our people and thank them for their ongoing and relentless focus on our customers at this important time.”
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