Shares in debt-laden oil and gas services company Petrofac (LON: PFC) have fallen to new lows since they resumed trading after a month-long suspension.
Shares started at trading at 10 pence each when the market opened this morning. They saw a strong rally, however, rising 80% to eventually hit 18 pence.
This marks an increase above their position when shares were suspended at the start of last month.
However, since then, they have dropped to around 13.5 pence. each
In addition, the Financial Conduct Authority (FCA) has restored the company’s ordinary shares to the premium listing segment its Official List.
The company announced that trading in the company’s ordinary shares has restarted on the Main Market of the London Stock Exchange, with effect from today.
Petrofac’s share price has been hammered by its recent financial worries.
The end of last year saw its shares crash 65%, falling down to 17 pence at the start of December.
This trend continued in the early months of 2024, despite a slight rally to over 22 pence.
Petrofac temporarily suspended trading its shares on 1 May in accordance with London Stock Exchange rules as the group delayed its full year report for 2023. The news sent shares down to 15.2 pence.
With the release of the group’s full-year 2023 report, share trading has now resumed.
The report showed that Petrofac suffered a $505-million net loss in 2023, and that its net debt reached US$583mn against a gross liquidity of US$201mn.
Petrofac said it was looking to sell some of its non-core assets to provide fresh capital, with its share in the PM304 Production Sharing Contract in Malaysia having received non-binding offers.
The company also said that it did not make the payment of the bond coupon due on 15 May 2024, noting that it continues to rely on deferrals of payments from its lending banks.
With the company considering issuing more shares as it converts debt into equity in an attempt to gather fresh capital, shareholders will be unhappy as it dilutes their holding in the company.
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