Petrofac, provider of full life-cycle services to the oil and gas sector has confirmed the severe extent that the pandemic has had its business.
In a pre-closing trading update ahead of its interim results due on 11th August, the FTSE-250 listed firm confirmed that the trading has been materially impacted by the pandemic and the more broader fall in oil and gas prices.
Like many, Petrofac sought to emphasise how it will survive the downturn and emerge stronger as it revealed net debt of $139m at the end of May.
“Over the last three years we have transitioned Petrofac back into a more resilient, capital light business and strengthened the balance sheet. We have also grown our position in gas, clean fuels, renewables and carbon capture. This strategy, combined with the accelerated and structural reduction of our cost base and continued investment in capability, best positions Petrofac to weather the current storm and emerge stronger as markets recover.”Ayman Asfari, CEO, Petrofac
Cost cutting is very much the order of the day as it forecast to be on track with cutting costs of $125m during this year and up to $200m over the course of next year.
Alongside this, other measures to improve its cash flow include suspending the final dividend and a 40% reduction in capital expenditures.