Petrofac Share Discussion Threads

[investtofly] 10/6/2024 09:27

Not as yet

[ghhghh] 10/6/2024 08:35

I was expecting some news today. Unless a performance guarantee is sorted by 14th June, one of the big projects gets pulled.

As I posted last week I'll be surprised if this is a problem

The required cash collateral will come from existing surplus cash over and above the minimum $75m threshold. Just needs the RCF/TL's to sign off on it.

[kipper62] 10/6/2024 08:17

Great article? All he needed to include in the long list of potentials was Tesco and he would have been sure to claim the usual, 'I told you so.'

[general george] 10/6/2024 07:53

I was expecting some news today. Unless a performance guarantee is sorted by 14th June, one of the big projects gets pulled.

[midasx] 10/6/2024 07:38

By Daniel Hill / June 7, 2024
Leading oilfield services provider Petrofac has seen a significant surge in its share price today, up over 21%, driven by an uptick in investor confidence, as rumours of a takeover mount.

Industry insiders suggest that a substantial offer is on the horizon, with a prospective price of around £1 per share, as several major players are believed to be in the running for acquiring Petrofac. Among the contender are Schlumberger and Halliburton, both of which are global giants in the oilfield services industry. Acquiring Petrofac could strategically enhance their service portfolios and expand their market reach.

The news comes as Petrofac is reportedly close to agreement with noteholders, marking a significant milestone for the company as it seeks to stabilise finances and double down on growth, following a rollercoaster year. The firm recently published its accounts for 2023 and confirmed a net debt of US$583 million, with losses for the year totalling US$506 million. However, the company’s revenues remained relatively steady, coming in at US$2.49 billion.

While the accounts included a going concern warning, highlighting the company’s previously precarious financial situation, Petrofac’s recent agreement with noteholders has begun to solidify its financial footing. The company, which was in default of interest under the terms of its senior secured notes, has now entered into a forbearance agreement with an ad hoc group of noteholders. This group, which represents approximately 41% of the outstanding senior secured notes, has agreed not to take enforcement action in respect of the non-payment of the coupon until at least 30 June.

Petrofac’s projections for the future are promising, with the company expecting to maintain liquidity at or above its covenant level until at least the end of September 2024. This, coupled with the company’s steady revenues and the positive impact of the new agreement, paints an optimistic picture for investors.

Building on this potential suitors are now reported to be circling, with TechnipFMC, a leader in subsea, onshore/offshore, and surface projects, also in the running, with interest in Petrofac’s engineering and construction services highly complementary to its existing operations.

National oil companies such as Saudi Aramco and ADNOC (Abu Dhabi National Oil Company) are also speculated to be eyeing Petrofac. These state-owned enterprises have been actively expanding their oilfield service capabilities and could see significant synergies with Petrofac’s expertise.

Private equity firms, including Carlyle Group and Blackstone Group, are known for their substantial investments in the energy sector and might view Petrofac as a valuable addition to their portfolios. Their interest could drive the competitive nature of the bid process, potentially leading to a premium offer.

Additionally, international conglomerates such as Mitsubishi Corporation and Siemens Energy have been mentioned as possible bidders. Their diversified interests and strategic goals in the energy sector make Petrofac an attractive acquisition target.

Regional competitors like Wood Group and Lamprell might also be considering a strategic takeover to consolidate market share and enhance their service offerings.

While the exact details of the potential bid remain undisclosed, the surge in Petrofac’s share price reflects growing optimism and anticipation among investors. The coming days will be crucial as the market awaits further developments and official announcements.

For now, Petrofac continues to be a focal point in the oilfield services sector, with its future potentially reshaped by this significant takeover speculation.

[wellbutpoor] 10/6/2024 06:54

It's possible and I believe this to be the case that Major shareholders (through clever arbitrage strategies via their own stock) may now also now have control of a large % of the bonds - Asfari, Azvalor etc.

[humpty dumpty 33] 09/6/2024 20:02

Maybe there is a third option!

[owan] 09/6/2024 16:09

Debt for equity swap at Best insolvency at worst and the share price does 130% in a week! Confused.com

[owan] 09/6/2024 16:05

Tomorro is a big day will we see an rns?? The price action here is totally confusing

[ghhghh] 09/6/2024 13:11

I also wonder if there is another bunch of BH's (outside the 41% Ad hoc BHs) and it's they who want to know the break up/insolvency valuation before agreeing to the Ad hoc committee's proposal. Perhaps to compare with what the Ad hoc BHs are proposing to leave them after the $200m SS bond and price of the $100m bridging facility.

Would make sense, I can't believe that 59% of BHs are passively waiting on the 41%.

[investtofly] 09/6/2024 11:50

May hear something very soon if not tomorrow morning

[armbar] 09/6/2024 11:44

Question is why has Asfari not sold his 85million shares , he last paid 34million at 115p, he bought 2million at 494p 2018 Azvalor has not sold either and research the history between the two. Between them 30% And if anyone had a view Asfari as the founder will have had, not sure how pleased he will be to lose 100M plus You know my view being manipulated especially since the landmark TenneT contract largest in PFC history , hmm

[wellbutpoor] 09/6/2024 11:12

ghhghh

For me that makes a lot of sense

There's a lot of consolodation happening in the industry at the moment - Baker Hughes & Shlumberger tied the know recently and I'd expect more of the same from the like of TechnipFMC, Siemens Energy etc etc

[ghhghh] 09/6/2024 11:05

So is the lack of restructuring progress (from the 12th April update) because Debtholders are determining whether a break up offers a better return than D4E?

[dipa11] 09/6/2024 09:24

Https://thefinancialanalyst.net/2024/06/07/petrofac-shares-surge-amidst-takeover-rumours/

[ghhghh] 09/6/2024 08:34

Page 153 from last week's accounts

In light of these risks, as part of the negotiations of the Financial Restructure, the Company’s secured creditors have required the Board to work on various contingency plans including making preparations for alternative outcomes to a successful restructure. This includes changes to the Group structure to create a single point of enforcement. In addition, work has been required to evaluate which parts of the Group, if any, could be separated and continue to trade independently. These assessments are ongoing and expected to be completed prior to the implementation of the Financial Restructure.

Such contingency plans, if enacted, in the absence of a successful implementation of the Financial Restructure, would likely result in the Company entering an insolvency process. The future intentions of Lender Group stakeholders in this regard cannot be known with certainty by the Board.

In the event of an unremedied default by the Company, the lending group could exercise their security rights which would likely result in the Company entering insolvency proceedings

[action] 08/6/2024 23:34

As said previously shorters paradise.

[armbar] 08/6/2024 23:08

Just a thought 1. Pre suspension remember the speeding ticket when it hit 34 , no reason just repeated the previous information and seemed to be to halt the rising share price for some reason.2. Then PFC announce suspension info share price drops significantly as they announce the financial options 3. Announce restoration and share price exceeds 120% and over 80M shares traded , short remain unchangedNow think about point 1 TO, MBO, Lowball , imo ME hands GL

[npk2] 08/6/2024 20:31

That narrative is right up your short trade position.

[jaknife] 08/6/2024 20:28

Owan,

"If an offer emerges il eat my hat… and coat too"

I presume that you mean an offer to acquire the shares?

It's not beyond the realms of possibilities that "offers" might be made to acquire parts of the business (free of debt) and that the banks/bondholders decide to accept those offers. I could imagine that some creditors might prefer the simplicity of what would, in essence, become a liquidation rather than proceed with the debt for equity swap, which also requires additional equity to be raised.

JakNife

[owan] 08/6/2024 19:54

If an offer emerges il eat my hat… and coat too

[secretsqu] 08/6/2024 19:49

Must have related to mission impossible.