Petrofac Share Discussion Threads

[halfpenny] 02/4/2024 07:18

With North Sea projects and Oil Production falling rapidly how are PFC impacted as 80% of their work is overseas!!

Is that correct??

Any news on promised Asset Sales?


Many are waiting for news on Sales as well as Mega Contracts..

[leoneobull] 02/4/2024 07:02

Shorters hit again. Every time they scream d4e, a 1bn contract rolls in the door. Let's hope this is RNSd during the day

[armbar] 02/4/2024 06:45

Meed 2.4.24Petrofac selected for Algeria upstream projectThe contract has been estimated to be worth $1bn

[armbar] 01/4/2024 13:41

Cash-strapped Petrofac aims to sell its upstream and pipelay vessel assets as part of a critical drive to raise some $450 million to shore up its ailing balance sheet, according to multiple market sources.Upstream was also told the company may even consider selling its huge UK North Sea operations and maintenance (O&M) business, although it is still considered a core part of Petrofac's business.Wonder what that would raise , sale of PM304 circa $80M+ , plus pipeline vessel, add in closing several legacy contracts , plus Thai oil at ready start up stage equals stage payment on the 1.4Bn project 10-20% est, Then active non controlling cash injection stake maybe a private equity, then if consideration of North Sea assets How is that for strengthening the balance sheet , that unlocks the guarantees , the 100M back into the life of the contact , and start to use the cash flow from the $8bn backlog with $60bn pipeline , then focus on hydrogen , carbon capture and wind , all in global demand and scalable.Before any JV/Takeover/Mbo

[leoneobull] 01/4/2024 11:13

150m Malaysian assets sold.April Fool's!

[halfpenny] 01/4/2024 10:27

With North Sea projects and Oil Production falling rapidly how are PFC impacted as 80% of their work is overseas!!

Is that correct??

Any news on promised Asset Sales?

[halfpenny] 31/3/2024 14:38

..Next week should be interesting will it be:-

Up More towards 45-54 target or
Profit taking ??

[halfpenny] 31/3/2024 11:10

Remember the Analysts Target 45-54p soon

[armbar] 31/3/2024 07:51

In a strategic move to bolster industrial decarbonisation efforts, Schlumberger has announced a significant partnership with Aker Carbon Capture (ACC), aiming to merge their carbon capture operations.Upon the completion of this deal, SLB is set to hold an 80% stake in the combined entity ACCH , with ACC retaining 20%Cross off SLB , always thought Adnoc is the favourite for JV/TO spin off for Petrofac for many reasons,First of its kind, scalable , CCUS, hydrogen and wind solutions, Uae ICV.This space is warming up excuse the pun Carbon Capture.GL

[dipa11] 29/3/2024 20:27

HTTPS://www.petrofac.com/media/news/petrofac-secures-contract-extension-with-onegas-west-in-core-uk-market/

[armbar] 29/3/2024 11:25

$86M book value Asset sale , legacy contracts and ready for start up Thai Oil stage payment on a contract $1.4Bn 10-20%, then Non controlling stake could be a private equity agreement cash injection that would be great, short term cash , unlocks guarantees. Then joint ventures , mbo, takeovers, equity raise and D4E bottom of the list imo, bond holders may want D4E but unlikely imo Nov 26 , BOD wont be giving it away for obvious reasons and certainly not when bonds not dues for 2.5years

[wellbutpoor] 29/3/2024 09:54

From Trading Update 27.07.2023

'We remain focused on closing out legacy contracts, with five of the remaining eight contracts expected to be completed during the second half of the year or early in 2024. On the Thai Oil Clean Fuel contract, good progress is being made on the construction phases of the project.

The execution plan remains in line with the update provided with the FY22 year end results and discussions with the client in relation to cost recoveries are ongoing'.

Do we have any intel on the progress of the five aforementioned projects?

FY results look to be due in a few weeks.

[loglorry1] 29/3/2024 09:44

PFC carry PM304 at a net book value of $86m on their balance sheet.

I doubt they'll get more than $60m in a distressed sale to ENQ or anyone else. Its something but not enough.

Impairment of Block PM304
The production sharing contract for Block
PM304 in Malaysia expires in September
2026, and we are in continued technical and
commercial discussions with Petronas and the
joint venture partners in respect of an extension.
Based on developments in the current year
and the associated uncertainty in respect of
securing that extension, management continues
to assume that it will not be secured when
assessing the carrying value of the asset at the
year-end. The review of all relevant assumptions
resulted in an impairment reversal of US$6
million (2021 restated: charge of US$33
million) recorded in the year. As a result of this
impairment, the net book value carrying amount
of Block PM304 as of 31 December 2022 is
US$86 million (2021 restated: US$84 million).

[leoneobull] 29/3/2024 09:02

How very altruistic, Log LOL

[loglorry1] 29/3/2024 09:01

Leonbull, Enquest might buy PM304. I hope they do but with the associated debt and decommissioning liabilities, as discussed it won't produce much cash to repay the RCF.

I hope Enquest do get them cheap. I hold a lot of ENQ bonds which have recovered to par and a little bit of the equity. Enquest have never been in the same situation as PFC. Their assets produce a lot of FCF which has paid back lenders. There's a huge difference between PFC and ENQ and also TLW. PFC have yet to show they can turn sales into FCF. Whereas ENQ has and contines to produce $300m FCF a year. TLW a lot more marginal. I hold a lot of the TLW senior secured bonds which are more risky than ENQ bonds but I still think I'll be repaid at par and they amortise along the way.

[loglorry1] 29/3/2024 08:55

I've just been told the answer to this is they can't keep the decomm liability.

"No. In Malaysia you need to fund your decommissioning cost, with cash on the asset side, so PFC has non-current asset restricted for expected decommissiong. If PFC sold the Malaysia asset, both the liability and asset leg related to the decom needs to go to the buyer, the rules are very strict."

Sorry bulls I tried.

[leoneobull] 29/3/2024 08:39

Would that be Enquest whose bonds traded well under par like pfc which have now recovered?Happy Easter all

[loglorry1] 29/3/2024 08:37

It seems like Enquest is looking to buy some assets in Malaysia. Could be PFCs Malaysia block PM304. We've discussed this before and concluded after paying down related debt and decommissioning liabilities it won't produce much cash.

However, I suppose PFC might be able to sell it and retain the decommissioning liabilities on their own balance sheet (which they can do themselves). This might free up a bit more cash.

A bull point for Easter.

[halfpenny] 29/3/2024 08:30

PFC price rising towards 44-54p as Deals flow.

Future bright adding more, don't miss-out!

[covid 19 deal] 29/3/2024 06:48

Big warning....a company with negative equity is dead..any time you can loose all your money here

[armbar] 28/3/2024 21:53

D) have no more information than anyone else and are just averaging, hoping it plays out GL

[halfpenny] 28/3/2024 21:43

PFC future bright...45-54p target closer

[wellbutpoor] 28/3/2024 20:54

Millenium have increased their short three times from 1.67 to 1.81% in a week.

Are they - (A)arrogant, (B)fortune tellers or (C)well informed / highly educated?

Please vote using the options above. Calls to this number are recorded and used for training. Please ask your grown up before voting....vulgar responses will be reported to the Ministry of Naughty Thoughts....

Bonds are flat.

ADR's are at an all time low.....

[wellbutpoor] 28/3/2024 17:33

Good traction today.

A welcome piece of news.

This is no busted flush.

It could be THE recovery play of the year.

Have a great weekend all.

WBP