The oil services group at the centre of a corruption inquiry has warned investors of increased risks to its future after one of its former employees was convicted of bribery. Petrofac said that developments in the investigation by the Serious Fraud Office had increased “the risk of a loss in share price value, prosecution, fines, penalties or other consequences, including reputational damage”. In its annual report it said that, as a result, risks had increased since last year in five principal areas that could threaten its future prospects, including the threat of “loss of licence to operate” and “loss of financial capacity”. The warning comes two months after a former senior executive pleaded guilty to bribery over payments of more than $50 million that the… Want to read more? Subscribe now and get unlimited digital access on web and our smartphone and tablet apps, free for your first month.
Petrofac has warned that the company is at risk of further legal action after former employee David Lufkin pleaded guilty to 11 charges of bribery two months ago. In its annual report, the company said it faced possible reputational damage, the threat of losing its licence to operate and distress of its share price. Company auditor EY said Lufkin's guilty plea elevated the prospect of financial sanctions, which could materially impact Petrofac's financial viability. The Serious Fraud Office has alleged that Lufkin acted in concert with other current and former employees. While the non-ministerial government department has not brought any other charges, its investigation is ongoing.