London-based energy services firm Petrofac Ltd reported on Friday that its loss for the full year 2023 widened compared to 2022.
Petrofac reported a net loss of $505 million for the year ended December 31, compared to a loss of $320 million incurred the previous year.
Revenue for the year declined to $2.496 billion from $2.567 billion generated a year ago, with reduced activity in E&C being largely offset by growth in Asset Solutions.
Tareq Kawash, Petrofac's group chief executive, said: "2023 was a challenging year for Petrofac.
"Our financial results reflect additional losses on the legacy contract portfolio, in particular the Thai Oil Clean Fuels contract where we are in negotiations to seek reimbursement of a proportion of the additional costs.
"In addition, the challenges in obtaining guarantees for our new EPC contracts, and the impact on liquidity, resulted in the business seeking to deliver a critical financial restructure, which is ongoing and has the full focus of the board."
Free cash outflow for the year of $223 million primarily reflected the operating outflows and higher interest payments in the year attributable to the increase in the group's average net debt levels.