Petrofac Share Discussion Threads

[sigala] 05/8/2014 22:49

In their IMS on 9th May they forecast net profit between $580 and $600m for 2014. Taking the mid point of this range equals £349.5m at current exchange rate.

With 345.9m shares in issue then EPS would be £1.01 according to my calcs.

They reiterated this earnings guidance in their trading update in June. The June RNS also stated that net debt had risen to $1.3bn as at 31 May which has given some analysts a bit of the jitters it seems.

In the RNS they say that part of the increase in net debt is that high levels of working capital balances built up on certain contracts in 2013 have not yet unwound.

It would be worth going back to their previous presentations to analysts to look at the forecasts they were making about movement in net debt for the year ahead. From memory I don't recall them forecasting this level of debt, which might suggest that payments they were anticipating haven't been made at the time they expected.

I have a vague recollection that they had experienced some difficulty in getting PEMEX to authorise payment for the work they had done for them. This seemed to be more a problem of navigating the various labyrinths of Mexican bureaucracy if memory serves.

This is only from memory, as I say, really it would be worth going back and listening again to the Q&A with CFO Tim Weller and the analysts.

AIMHO,

Regards

[hydrus] 05/8/2014 22:15

Pyemckay how did you get 70p?

[hydrus] 05/8/2014 22:13

Broker Consensus is £1.02 for 2014

[its the oxman] 05/8/2014 22:12

Fear we could head toward 700p in that case. Surely it can't be that dire.

[pyemckay] 05/8/2014 21:53

a quick scan of the numbers and eps forecast look really outdated. eps must be 70p at best. not overly cheap imo

[hydrus] 05/8/2014 14:54

Squeaky bum time

[gunnerman] 04/8/2014 10:59

Ahhh, the insanity of the market.
Ignore the balance sheet, dividend, order book, low PE, outlook and sell with the herd at the bottom.

[hydrus] 04/8/2014 10:26

Testing multi year lows, if it breaks down then looks like a big drop is in order

[2ngh] 31/7/2014 12:08

That's the 1080 I was talking about.

Needs to hold otherwise..... Gulp.

[gunnerman] 31/7/2014 09:50

Wow, at 1087p this has to be the best value stock in the FTSE and still the bots drive it lower!

[2ngh] 29/7/2014 22:34

Looks like a retest of dec low at 1080 coming.

Needs to hold otherwise fresh air downwards.

[its the oxman] 25/7/2014 16:27

Does the market know another poor set of results is on the way ?

[2ngh] 25/7/2014 14:45

25 Jul 14 Petrofac Ltd Societe Generale Hold 1,132.00 1,480.00 1,220.00 Downgrades

Downgrades from buy to hold.

[ards] 25/7/2014 12:45

societe general hold 1220

[abcd1234] 25/7/2014 12:35

new broker downgrade weighing - FT

[salpara111] 25/7/2014 08:55

Well, support is at 1080.
I have set a limit order at that price so will see if it gets filled.
They have struggled with numerous setbacks over the last few years and they will report falling profits in £££s due to the weakness of the $ over the last year.
The divi is not that big but will start to provide support at some point, probably around the £10 level.

[bulltradept] 25/7/2014 08:26

PFC's time to get goosed perhaps? Support @ £11.00

[piedro] 24/7/2014 18:04

Wow !!! Some investors here !!!
Only interested in the sp
not what the company does.

[philo124] 24/7/2014 17:40

1150p what's the reason for this?

[piedro] 24/7/2014 15:38

Is this the same project as mentioned in the RNS of 10 July ?

Kuwait invests USD 17 bln in environmental fuel project
23/07/2014
Kuwait is investing over USD 17 billion (KD 4.6 billion) to develop oil refineries as part of the "environmental fuel" project to be launched in 2018.
The project, which kicked off last April, aims at developing Mina Al-Ahmadi and Mina Abdullah refineries, providing them with new units to increase their refinement abilities.
....
The project will be financed by Kuwait Petroleum Corporation (KPC), said the report. The companies that won the tenders for the projects are (JGC) Corporation, the Japanese company which has previously worked with Kuwait in building Al-Ahmadi refinery in the 80s, Petrofac from the UK and Fluor from the USA, the report added. .... ....
hxxp://www.kuna.net.kw/ArticleDetails.aspx?id=2389101&Language=en

[blueclyde] 14/7/2014 16:26

Indeed, I would think that a potential offer would have to be around the 2000p share mark? The order pipeline is at a record high and should continue to grow.

[philo124] 14/7/2014 12:09

Yes, a buyer would get a good bargain @ £15 on a long term view.

[blueclyde] 14/7/2014 11:06

Took a position here this morning. Looks an obvious take over target, especially now Kentz is gone.