Petrofac addresses SFO bribery investigation in 2018 financial results
The company reported a 2% drop in its business performance net profit, and a $5.3bn in secured revenue for 2019.
In a release announcing its financial results for 2018, Petrofac addressed the UK Serious Fraud Office's (SFO) investigation into the company. In its 2018 financial results, Petrofac reported a backlog of $9.6bn at end-2018, and $5.3bn in secured revenue for 2019. Its business performnet profit dropped 2% to $353mn.
The ongoing SFO investigation in early February 2019 led former global head of sales David Lufkin to plead guilty to 11 counts of bribery for contracts worth a combined $4.2bn, according to a news release by the SFO. This prompted Petrofac to note that no current employee had been charged, and that "Petrofac has policies and procedures in place designed to ensure that we operate at the highest levels of compliance and ethics."
Following Lufkin's plea, the family of late Petrofac co-founder Maroun Semaan refuted media claims that he was involved, based on a confidential court document.
The latest statement by Petrofac is written as follows:
"We reiterate that no charges have been brought against Petrofac or any other officers or employees. No current Board member of Petrofac Limited is alleged to have been involved in relation to the admission of offences by a former employee on 6 February 2019. In the absence of any charge or credible evidence, Petrofac intends as a matter of policy to stand by its employees.
Whether further charges are brought against former or serving employees, or the Company, remains a question for the SFO. Petrofac will continue to engage with the SFO and will respond to any further developments as appropriate. We are focused on bringing this matter to closure.
The Company has the utmost respect for the robust, highly structured and rigorous processes of its clients. We only expect to be awarded business by submitting the best technical and most competitive commercial offer.
The use of agents in the industry remains common practice, and in some countries a legal requirement. Petrofac has comparatively few agents, having phased the majority out as the business established its own regional and local infrastructures."