Petrofac Share Discussion Threads

[philanderer] 18/12/2013 12:59

"Oilfield services firm Petrofac was trading lower this morning after a profit warning from French peer Technip. "

Sharecast

[shugsy] 18/12/2013 09:41

GS has them at 5.4bn if that helps.

[piedro] 18/12/2013 08:59

2NGH
"seriously beaten up stock with assets worth twice as much"

Can you tell me what their assets are worth, please?

[2ngh] 18/12/2013 08:24

seriously beaten up stock with assets worth twice as much, there is a real chance this could be taken over at these levels. 6 months this will be 1400+ imo.

support at 11 and 1041

[salpara111] 18/12/2013 08:18

Looks like I am going to wait and see if £10 is tested.
I guess if you look at the bigger picture then it makes sense. The FTSE is flooded with small/mid cap oilers who have been tapping the markets for cheap money over the last few years to follow what have been mostly fruitless drilling programmes, the share prices across the E&P oil sector are at all time lows. However the main problem starts now in that these businesses are not self sustaining and are finding it increasingly difficult to raise fresh capital so clearly there is going to be a major slowdown in money in this sector going forward.
The question is how much this affects the likes of PFC but any new negative news in the sector is only going to give the shorters more meat to get their teeth into.

[2ngh] 18/12/2013 08:11

down another 2% with oil and the markets up even after the 4% decline yesterday.

[its the oxman] 17/12/2013 20:19

Suggests a fairly nervous run into next newsflow and possible further erosion of forecasts. At least chart suggests downside maybe limited and 1000p could provide some support when / if tested.

[philanderer] 17/12/2013 20:03

Telegraph Market Report

Petrofac hit by CGG profit alert

The oil and gas services company was the second-heaviest faller in the FTSE 100

A profit alert from French seismic surveyor CGG sent tremors rippling through the wider oilfield services sector today, sparking a heavy fall in Petrofac shares.

CGG, which helps companies gather data on oilfields, unnerved investors by disclosing that it had cut its forecast for full-year earnings before interest and taxes to between $400m (£246m) and $420m, down from an earlier $470m estimate.

The group, which only last month slashed its revenue growth forecast for the year, said customer order delays were to blame for the warning. As a result of the alert, CGG shares dropped as much as 18.1pc before closing 16.9pc lower in Paris trading.

However, it was not just CGG shares that were hurt by the warning. Sentiment towards other companies dependent on oil and gas explorers for work, such as Oslo-listed surveyor Polarcus, was dented today. In London, oil and gas services business Petrofac, which in November cut profit growth forecasts, was hardest hit and slumped 43p, or 3.7pc, to £11.10 – the second-biggest faller in the FTSE 100.

Amec also dipped 11p to £10.48.

[philo124] 17/12/2013 17:51

In Sipp so tend to forget about it.

[hatter2] 17/12/2013 17:40

Price getting silly now and assuming there is no leaked bad news, PFC looks an absolute bargain but you have to select your time horizon. At some time in the future the sector sentiment will improve and hopefully the sentiment to PFC will also improve. Given this happening, then we will probably move decently up from the current PE of 9.4.

However, I do agree with UHOUND that if the share has given you enough pain then do not stay invested just because you are nursing a big loss. This one may take some time to pull back round and if you see a better, less worrying opportunity, then it may be less stressful to move on.

I will continue to hold as I see the stock as good value and believe the value will come out given time; happy to wait, that's me.

[salpara111] 17/12/2013 17:26

Heck of a beating today.
The fundamentals of this stock comfortably support its current share price so personally I don't think this is a sell but for those of us looking to take our first stake it is clear that there is no love in the market for PFC which makes picking an entry price difficult.
The current level has been touched in the last 3 years and if that is not supported then the next one is £10 but I just can't see it falling that far.
As usual DYOR

[uhound] 17/12/2013 16:57

F1araway - "I cannot afford to sell - nursing too big losses"

NEVER think it's to late to sell - this is one of the biggest rooky mistakes as an investor - better to put what you have less into something going up.

[shugsy] 17/12/2013 14:05

Oil flying now with wall street jump in futs

Cable falling...

Makes no sense being down 3%

[shugsy] 17/12/2013 13:52

Flip side - No taper and risk assets rally - massive jump here.

[f1araway] 17/12/2013 13:38

Yes but one tiny bit of bad news, (even the end of US QE) & this will crash even further. I cannot afford to sell - nursing too big losses.

[2ngh] 17/12/2013 12:41

shugs

be a while to turnaround, come end of H1 i think it will have closed the gap at 1417.

[philo124] 17/12/2013 12:09

Bought some more for SIPP.

[shugsy] 17/12/2013 10:58

Here we go, L2 strong and now have momentum, oil continuing to rise.

[shugsy] 17/12/2013 10:46

Any buying volume here and it could take off.

[shugsy] 17/12/2013 10:45

Dow futs now positive, if we get some support it could be 1160 in a jiffy.

[speedsgh] 17/12/2013 10:41

support at 1100p from 2011?

[piedro] 17/12/2013 10:40

How many ships do they own?

[shugsy] 17/12/2013 10:15

Oil advancing again too and cable down.

[shugsy] 17/12/2013 10:14

Goldmans note - significantly undervalued and assets worth between 1500-2000 per share.

Strange to see this level of fall on low volume with GS buy broker note out.

Usually you get a 2%-3% increase.

[shugsy] 17/12/2013 10:12

17 Dec 13 Petrofac Ltd Goldman Sachs Buy 1,128.50 - 1,509.00 Reiterates