In a significant setback for the UK energy services sector, Petrofac has announced that its sweeping financial restructuring will likely eliminate all shareholder value. Mounting cost pressures, delayed project payments, and tightening financing conditions have driven the company to seek creditor-led recovery.

The restructuring aims to safeguard Petrofac’s core capabilities in refining, petrochemical, and engineering services, but equity investors are expected to face total write-offs. The move underscores the rising vulnerability of oilfield and refinery contractors as global projects slow amid volatile crude markets.

Analysts believe this could signal broader consolidation across European energy infrastructure firms, as cash flow constraints and capital risk intensify.