Petrofac to sell offshore construction vessel to Shanghai Zhenhua Heavy Industries

Petrofac’s, which designs, builds, operates and maintains oil and gas facilities, net debt stood at $612 million at the end of last year. (Courtesy Petrofac)
Updated 11 May 2018
0

Petrofac to sell offshore construction vessel to Shanghai Zhenhua Heavy Industries

Oilfield services provider Petrofac Ltd. said on Tuesday it agreed to sell an offshore construction vessel to Shanghai Zhenhua Heavy Industries to reduce debt.
The deal is valued at $190 million and Petrofac will also receive a 10 percent stake in a new special purpose company set up to own the vessel once commissioned.
Petrofac also said it would provide technical support for the construction of the vessel, which is expected to complete in 2022, but would not contribute to the cost of construction, commissioning or testing of the vessel.
The company, which designs, builds, operates and maintains oil and gas facilities, expects to use the proceeds from the sale to reduce gross debt. Net debt stood at $612 million at the end of last year.
“We expect a positive market reaction to Petrofac’s announced asset disposal as it will help balance liquidity and reduce refinancing concerns around the October bond expiry,” Morgan Stanley analyst Robert Pulleyn wrote in a note.
Pulleyn said the deal reduces the amount they expect the company to refinance to about $250 million-$300 million, from about $400 million anticipated earlier.


Nissan to oppose having same chair as Renault

Updated 30 min 44 sec ago
0

Nissan to oppose having same chair as Renault

  • Renault and its largest shareholder French state are pushing for Jean-Dominique Senard to take up the chairmanship at the Japanese company
  • Senard was appointed chairman of the French automaker in late January, and is also expected to be named to Nissan’s board

LONDON: Nissan Motor Co. Ltd’s independent committee on governance is expected to recommend against the company having the same chairman as Renault SA, the Financial Times reported on Wednesday, citing people with knowledge of the discussions.
Renault and its largest shareholder French state are pushing for Jean-Dominique Senard to take up the chairmanship at the Japanese company, the report said.
Senard was appointed chairman of the French automaker in late January, and is also expected to be named to Nissan’s board, given Renault’s 43 percent stake. The Japanese automaker holds a 15 percent, non-voting stake in the French firm.
Renault and Nissan were not immediately available for comments.