Shares of Petrofac, a company specializing in oil and gas field services, fell by more than 30% on the London Stock Exchange today, recording a sharp decline that raised investors’ concerns about the company’s future.

This sharp decline comes after Petrofac announced the postponement of the publication of its annual performance report for last year 2023, amid fears of the continued debt crisis that threatens to suspend the trading of its shares on the London Stock Exchange.

In December 2023, the company expected its net debt to rise due to the delay in advance payments on contracts and the subsequent increase in guarantees by more than $100 million.

The crisis worsened as the company postponed sending the disclosure statement about last year’s performance until the end of next May. Which prompted the London Stock Exchange management to stop trading in the stock starting May 1, 2024, until the performance report is sent.

Petrofac is struggling to solve the debt crisis by obtaining additional financing worth up to $300 million, including $200 million in new financing and $100 million in credit support.

The non-binding proposal requires converting a significant proportion of the group's current debt into equity; Which may harm current shareholders.

The company is currently conducting active negotiations with some financing parties to obtain the required guarantees, which could provide $200 million.

Petrofac is also facing pressure from lending banks that are seeking to postpone payments due in the middle of next month for an additional period.