Petrofac Share Discussion Threads

[mclellan] 25/11/2014 11:12

What nonsense.

[deanroberthunt] 25/11/2014 11:11

no rush to get in this, especially if it gets kicked out the 100.

[alexios1201] 25/11/2014 11:00

PFC is to lose it's blue chip status, this is when fun begins.SELL

[ohisay] 25/11/2014 10:29

HL comment.

Based on historic profits, Petrofac looks to be trading on a low price-to-earnings ratio relative to its history. However, future earnings are set to be a lot lower - even after a sharp fall this morning, the company is still valued at around 10 times the new, reduced, level of 2015 earnings expectations.

Recovery in 2016 is most uncertain; the worry for Petrofac is that during 2015, their oil company clients revisit their capital expenditure plans in the light of lower oil prices, putting the $21bn order book at risk. Over the last year and a half, market expectations for Petrofac’s profitability have almost halved. The weak oil price means that there is no guarantee that this trend will improve any time soon.

The company faces a period of heavy capital investment as the construction of its billion dollar offshore lifting barge progresses. The market’s next concern might be the level of demand that barge will meet when it eventually floats out of the shipyard, into a world of cheap oil. That leaves Petrofac looking like a business with uncertain profit prospects and pressured cash flows - not the stuff that premium ratings are made of. I expect the shares to struggle until the company demonstrates surer execution of work in hand or the oil price rallies.

Seems to me its got itself into a bad place with an execution capability the market doubts plus a shed load of debt 900m$? to service.I think they need some new blood near the top.

[ipw] 25/11/2014 09:54

Div yield at yesterdays close 877.5 was 4.77

[ny boy] 25/11/2014 09:42

Where are all those brokers with punchy price targets, another disappearing act lol!

[ards] 25/11/2014 09:21

think it is 3.5

[deanroberthunt] 25/11/2014 09:18

whats the div yield at these levels??

[ards] 25/11/2014 09:15

unfortunately 845 looks now to be resistance. may go lower to 800

[ards] 25/11/2014 08:57

seems to be holding old support which is good sign

[montyville2] 25/11/2014 08:56

They have said nothing that i can see about the dividend being threatened...am I right with this?

[ards] 25/11/2014 08:56

reported 17th oct all was well. then yesterday it was not. management needs to go but hay who seems to care. barc new target price 1400.

[its the oxman] 25/11/2014 08:52

Reckon we may end the day higher here. A lot in the price and have seen a massive fall now.

[tsmith2] 25/11/2014 08:33

Let the dust settle..may well go lower

[ards] 25/11/2014 08:30

2009 support around 845 and seems to want to go through. holders getting hurt and may have exhaustion spike down. may target 800 as nice round number over next few days. really need to see catalyst before bounce e.g. director buy. none this morning not a good sign. I am not gloating as took a bath with this baby yesterday despite doing everything right e.g. only buy once cleared 200ma and setting stop which was trashed.

[its the oxman] 25/11/2014 08:18

Reckon it may bounce back to 900p but hard to see it going much higher than that short term.

[deanroberthunt] 25/11/2014 07:47

last time it fell sharply it only recovered about 5 or 6% before continuing the downtrend.

[asturius101] 24/11/2014 21:27

Lol. Well where have you moved it? Retail? ;)

[mirshahik] 24/11/2014 21:11

Not early enough I should add

[mirshahik] 24/11/2014 21:09

I did, this morning.

[asturius101] 24/11/2014 21:03

Well, then sell. Your choice sonny.

[mirshahik] 24/11/2014 21:00

Bad project management is a big worry and creates uncertainty. May be a bargain at this price if they manage all other projects well. What if they don't?

[asturius101] 24/11/2014 20:59

Will add more tomorrow if it dips