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
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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.


Deutsche Bank appoints Riyadh GM

Updated 18 September 2018
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Deutsche Bank appoints Riyadh GM

  • German banking titan expects more deal flow from Kingdom
  • Deutsche Bank established base in Saudi Arabia in 2006

LONDON: Deutsche Bank has appointed Mohammed Alajmi as general manager of Deutsche Bank Riyadh Branch in Saudi Arabia.
He will have oversight of the bank’s business regulated by the Saudi Arabian Monetary Authority (SAMA), Deutsche Bank said in a statement.
The German banking giant originally established its Riyadh branch in 2006.
Alajmi joined Deutsche Bank in 2012 after more than a decade of working at local financial institutions in the Kingdom.
He was appointed chief operating officer in June 2015 overseeing the bank’s activities across all businesses and infrastructure functions.
The group expects to boost regional hiring this year, driven by expected corporate bond sales and initial public offerings, Bloomberg reported in February.