Petrofac Share Discussion Threads

[investtofly] 29/4/2024 06:24

https://www.petrofac.com/media/news/delay-to-publication-of-2023-results-update-on-restructuring-and-trading-update/?utm_source=news-alert&utm_medium=email&utm_campaign=news&utm_content=delay-to-publication-of-2023-results

[mirabeau] 29/4/2024 06:10

Bond payment default. Huge D4E, without question. This doesn't bode well. Let's see what happens from here.

PFC can turn this around. The question is will the company be in the hands of the shareholders or the bondholders? Let's hope it's the former

[action] 27/4/2024 11:30

What do you think share price goes up RNS from co to bring it down

[investtofly] 27/4/2024 11:22

I wonder what Asfari wants?

[armbar] 27/4/2024 07:48

More than three options imo :)But lets see next week Good Luck All

[warren bluff it 1] 26/4/2024 20:08

Remove the nought and you'll have a better chance

[geckotheglorious] 26/4/2024 19:59

Owan
Post 40013
Happy to hold here. 40p next week possible take over?


Hope it works out for you kemosabe.

Suspect it wont.

But Long bank holiday weekend. #mayday.

Year going uber fast!

[npk2] 26/4/2024 19:42

That Worting on the wall sounds like a nasty affliction.

[owan] 26/4/2024 17:53

Happy to hold here. 40p next week possible take over?

[warren bluff it 1] 26/4/2024 17:09

Don't know about kill it off, but surely heavy dilution better to wait to see if it's worth coming back in .

[investtofly] 25/4/2024 11:44

I thought more would have dumped by now it that were the case imo.

[dipa11] 25/4/2024 11:41

Same thing repeated today also. "Bolts is doing deals same price & same number of shares and surprisingly repeated 3 times frequently. Few deals has gone through since morning."DYOR

[blackhorse23] 25/4/2024 11:22

It will get worst before gets any better , D4E is not a good sign

[fiscal cliff] 24/4/2024 22:26

Dear oh dear.

[dipa11] 24/4/2024 13:09

Bolts is doing deals same price & same number of shares and surprisingly repeated 3 times frequently. Few deals has gone through since morning. DYOR

[jaknife] 24/4/2024 11:13

Miena,

"@JakNife & the other thing that I picked up from that RNS was their closing statement:

The discussions with lenders and other stakeholders continue at pace and further announcements will be made as appropriate.

Make of it what you will...

I'm not sure what you think that this means other than what the words plainly say? Negotiating a debt for equity swap at the same time as also negotiating a fresh equity raise at the same time as also negotiating the disposal of non-core assets is not a simple task!


"Shorts are reducing and the share price has for the 3rd day in a row followed the same pattern, which suggests to me that Shorts aren't finished yet...
Why would they reduce if a D4E was inevitable?? Good Risk Management??"

The available borrow for Petrofac has dried up in recent weeks and many shorts have had their positions recalled because the borrow is no longer available. This happens because the longs on the other side of the trade have decided to sell their positions and hence, quite simply, the borrow is no longer there!


"If I was Short I would have never reduced knowing a D4 E was inevitable..."

I would bet that you've never shorted anything? Lot's of retail punters are long only and don't actually understand what they're talking about when it comes to shorting.

At the start of the week the overnight borrow for Petrofac, on the Interactive Broker platform, hit 350%. Are you certain that you'd still keep your short open if you had to pay a 350% borrow charge?

JakNife

[loglorry1] 24/4/2024 11:07

4 and a bit trading days left in April for PFC to unveil what they are going to do.

[topazfrenzy] 24/4/2024 10:54

Next RNS regarding financing should take it down straight to 10p

[miena] 24/4/2024 10:51

@JakNife & the other thing that I picked up from that RNS was their closing statement:

The discussions with lenders and other stakeholders continue at pace and further announcements will be made as appropriate.""

Make of it what you will...

Shorts are reducing and the share price has for the 3rd day in a row followed the same pattern, which suggests to me that Shorts aren't finished yet...
Why would they reduce if a D4E was inevitable?? Good Risk Management?? as @gheckotheglorius so cleverly pointed out to me...

I definitely have a lot to learn before I become a big player like you chaps!!

If I was Short I would have never reduced knowing a D4 E was inevitable...

[jaknife] 24/4/2024 10:41

Miena,

I agree, you've not read it correctly, the key is the two words "It also" at the start of the second sentence. This means that the paragraph splits into two separate parts:

A. "The Company has engaged and remains in discussions with its lenders to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business."

There will be a debt for equity swap.

B. "It also continues to be in discussion with prospective investors and certain major shareholders in relation to potential further investment in the Company and remains in negotiations with prospective purchasers regarding the sale of non-core assets, as set out in recent announcements. All options remain under consideration. [my bold]

In addition to the D4E swap Petrofac is also investigating ways to raise additional funds.

The two are separate activities.

JakNife

[miena] 24/4/2024 10:20

@JakNife - ""The key is to actually read the company's RNSs:""

So let's practice what you preach... The RNS stated the following:

The Company has engaged and remains in discussions with its lenders to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business. It also continues to be in discussion with prospective investors and certain major shareholders in relation to potential further investment in the Company and remains in negotiations with prospective purchasers regarding the sale of non-core assets, as set out in recent announcements. All options remain under consideration.



Management and the Board are focussed on managing the Group’s payment obligations and delivering a solution which supports the provision of guarantees required for its recent contract awards, and which ensures that Petrofac has the appropriate capital structure and liquidity to support the strength of its US$8 billion backlog.

Clearly I can't read because there are 3 options the way I read it!

[jaknife] 24/4/2024 10:02

Miena,

"I take it that you have a seat at the PFC boardroom table, otherwise how else would know that a massive D4E is incoming..."

The key is to actually read the company's RNSs:

"The Company has engaged and remains in discussions with its lenders to restructure its debt which would result in a significant proportion of the debt being exchanged for equity in the business." [my bold]

See:

JakNife

[miena] 24/4/2024 09:52

@geckotheglorius I take it that you have a seat at the PFC boardroom table, otherwise how else would know that a massive D4E is incoming...

This is excellent news because up until now us mere mortals were under the impression that 3 options were on the table & you have now confirmed that a D4E is the only option!

It's not what you know, it's who you know... as they say... & guess what we know @geckotheglorius and he knows everything!