Petrofac Share Discussion Threads

[onjohn] 26/11/2014 08:42

930p on the way??

[its the oxman] 26/11/2014 08:38

900p test coming. Looking like we're heading for some consolidation 900p-1000p level, so still a bit to go for.

[dewtrader] 26/11/2014 08:19

picked up a few

[bookbroker] 25/11/2014 22:43

Suspect it rose on account of a positive outlook for oil price pending meeting of OPEC guys today before main one Thursday, oil price now taking another trickle down as a result of no agreement, most probably drop again tomorrow!

[dewtrader] 25/11/2014 16:47

nice find Leeds

[leedskier] 25/11/2014 15:58

I am not in this, but it could be a possibility for two reasons;


1)Schlumberger is not merely the best, but was until the M&A last week when Halliburton paid $34.6 billion for Baker Hughes, the largest. Schlumberger may want to recover poll position.

2) All seem agreed that it was not Petrofac's Order book but its management which underperformed. With low oil prices, a strong existing order book makies it an attractive target.

See also ...

[dewtrader] 25/11/2014 15:46

Last year, Petrofac established a joint venture with Schlumberger to jointly develop the Panuco fields with Petrofac as the lead operator. Why was it important for Petrofac to enter into this partnership?

The joint venture was essentially triggered as a result of events outside of Mexico where Petrofac and Schlumberger were discussing a global alliance. The overall goal of this partnership was aimed at enabling us to pursue these types of opportunities and Mexico happened to be among the first places to apply to that.

[hvs] 25/11/2014 15:44

lol !!!!!!

LOL!!!!!!!!!!!

And pigs do fly.

[dewtrader] 25/11/2014 15:40

Speculation that integrated energy services provider Petrofac is the target of a Schlumberger takeover has driven its share price up

[onjohn] 25/11/2014 15:24

looks like it wants to clime to £10

[cleott] 25/11/2014 15:06

OldG agree very much so, caught a lot of people out IMO. This does seem a bit of an overeaction and prices do overshoot of course but management do always seem to say the wrong thing at the wrong time or maybe the right thing at the wrong time !!

[hvs] 25/11/2014 15:03

Has I got the name right ?

Is it PETROFART ?

[mallorca 9] 25/11/2014 14:37

I hate always being right.

[oldmang] 25/11/2014 14:15

and by the by, Tim Weller, Petrofac's CFO has bought 20000 shares back in September, paying 1033p each. So he is in the same boat with us (and clearly didn't see this coming).

[oldmang] 25/11/2014 14:10

It looks pretty much like yesterday's share price drop is well orchestrated by someone interested for this stock to go down (shorties).

Well, let's think for a moment what caused this fall. All Petrofac done - is reduced their 2015 guidance. That's all. They confirmed that 2014 profit will be within the range. No dividend policy have been changed. And only 2015 outlook was reduced...

So, basically, the management decided to be more conservative for 2015, taking into consideration recent slump in oil prices (which was expected by the market anyway, and should be already imbedded in the price).

And the outlook itself is just management's best estimate of what they expect to book as a profit in 13 months' time. So, let's stop for a moment and think about this, shall we? 13 months is a considerable amount of time, isn't it? Anything could happen, eg. the oil price could bounce back, the unrest in the Middle East could finish, and so on... So 30%+ drop in share price due just one updated guidance looks pretty unreasonable, isn't it? And now, due to this slump, Petrofac most likely will be facing kickout of FTSE100, which in turn will push the price down further.

Just hope PFC management have something up their sleeve to support the price and avoid dropping out of FTSE100. Hope so...

[salpara111] 25/11/2014 13:16

Hmm, two pretty large articles in the FT today, both pretty much negative and questioning the competence of the management.

[its the oxman] 25/11/2014 13:06

Going to try for 900p at some point over next few days

[1gw] 25/11/2014 12:25

Looks like this is the attempt at a bounce then. What chance a positive finish?

[mallorca 9] 25/11/2014 11:30

Bought in.

[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!