Our approach to debt is simple:
- Our target gearing ratio is net debt/EBITDA < 1X
- Our covenants are: net debt/EBITDA of < 3X and EBITDA/interest cover of > 3X
Also read our Sovereign and Financial Market Risk Policy.
Unless it makes clear business sense, Petrofac prefers not to tie up its money in equipment, vehicles or any other physical assets.