North Energy ASA - Potential gain on Petrofac investment

09 Apr 2025 17:05 CEST

Reference is made to the Q4 2024 report and the Annual Report for 2024 where it
was disclosed that North Energy ASA (“North Energy” or the “Company”) after
year-end 2024 has invested in USD 18.8 million of nominal amount in senior
secured bonds issued by Petrofac Limited (“Petrofac”) at an average cash price
of less than 15% of par.

Petrofac is undergoing a comprehensive restructuring aimed at resetting the
capital structure and formalise the legal and operational separation of its
delivery units. The restructuring process involves raising at least USD 350
million in new equity and debt capital. A convening hearing was held on 20 March
2025 in the Companies Court (the “Court”) in London where Petrofac was given
permission to proceed with the restructuring process. Plan meetings with the
stakeholders in the restructuring, where the stakeholders will vote on the
restructuring, will be held on 23 April 2025 while the Court hearing to sanction
the restructuring is expected to commence on 30 April 2025 to run for a period
of up to 2 May 2025. Further information about Petrofac and the restructuring
can be found on www.petrofac.com.

As a senior secured bond holder, North Energy is entitled to invest new money in
the restructuring in return for new shares and new bonds. In addition, a portion
of its existing secured bonds will also be converted into new ordinary shares.
Based on North Energy’s debt holding, North Energy estimates that it can invest
approximately USD 4.4 million in new money and will be entitled to receive
approximately 330 million new Petrofac shares and approximately USD 4 million of
nominal value in new bonds issued by Petrofac. These figures might be subject to
some change if and when the restructuring becomes effective.

North Energy’s estimated holdings of shares and bonds in Petrofac has a value of
approximately USD 9 million based on the new equity subscription price in the
restructuring, while the total cost (original purchase price for the bonds plus
new money investment) is approximately USD 7 million. However, based on the
recent trading range of the Petrofac share price on the London Stock Exchange,
North Energy’s position would have an estimated value of USD 25-30 million. Note
that if the restructuring is effectuated, the number of Petrofac shares
outstanding will increase from the current 529 million shares to more than 20
billion shares. While there can be no assurances as to the level the Petrofac
shares will trade, both if and when the restructuring is effectuated, North
Energy at this time regardless believes that it is more likely than not to have
an unrealized gain on its investment that require us to issue this stock
exchange release.

North Energy’s entitlement to invest new money and receive new shares and bonds
issued by Petrofac continues to be subject to finalizing the Court sanctioned
restructuring. The Company will revert with further information in due course
and as further information becomes available.


CONTACTS
Rachid Bendriss, Co-CEO, (+47) 92660603, rb@northenergy.no


DISCLOSURE REGULATION
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Rune Damm at North Energy ASA, on 9 April 2025 at
17:05 CEST.

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