Petrofac Share Discussion Threads

[action] 02/7/2024 15:51

I hope due concludes ASAP. That way share price eventually improves.

[armbar] 02/7/2024 15:16

Agreed If it is the case To allow you or your cooperatives to acquire at a desired price range OrAllow someone else to acquire at the desired price range Reason being .... Only if this is the case , which we cannot substantiate at this moment. GL

[action] 02/7/2024 15:08

To buy at lower rate what else

[armbar] 02/7/2024 14:42

Could be a possibility, if so ask yourself why ? It may or not be the case, but think , if you were them why would you ? Couple of options if this is the case

[action] 02/7/2024 14:15

Unless the loan stock to shorters are from founders and associated parties

[armbar] 02/7/2024 13:55

Agreed the RNS 12th April added no further information, and many asked the question at that time , why release this RNS, speculation was the objective was to suppress the rising share price over that last three days 24-34pNow have to ask yourself why ? sure the founder Asfari and co would want the momentum to continue as they hold in excess of 30% and would be an opportunity to exit unless .... there is a compelling reason , unusual imo

[action] 02/7/2024 13:17

When share price was 40p and rising, RNS came out from no where saying all options are on table. So price gone in reverse. It is shorters paradise.

[action] 02/7/2024 13:15

Management kicking down the can on every opportunity to delay inevitable.

[forwood] 02/7/2024 13:13

So why give them the extension? Because it's a better outcome for the bondholders

[action] 02/7/2024 12:36

Matter of time b4 total wipe out.

[halfpenny] 02/7/2024 12:25

Sad sad times as another UK corrupt allegations on company fails - wonder why!!

More and more Falls as bad news flows..

Petrofac has extended its existing forbearance agreement in respect of the non-payment of the interest coupon on its senior secured notes from 30 June to 25 July 2024.

Further time to extend the pain and Lows

[jaknife] 02/7/2024 10:18

General George,

"The only 'takeover' would be asset stripping in administration."

And indeed the bondholders have explicitly required Petrofac's board to prepare the Group for that specific scenario. Again, from the accounts:

"... 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."

JakNife

[general george] 02/7/2024 10:01

As a bondholder, I'd love you to be right Armbar. But a takeover won't happen, for one any continued future losses on legacy contracts is very difficult to quantify - no company would take that risk, certainly pre-restructure. The only 'takeover' would be asset stripping in administration.

Disclosure - have traded bonds from 20-25, and bought back at 19.

[armbar] 02/7/2024 09:33

If you played it right , negotiate the bonds , ok bond holders currently 17 well you can take your chances on liquidation, insolvency , restructure D4E or we acquire them at X , say 40 are you interested ?OrMix of cash , shares or other securitiesOrAcquire the debt into the TO process which is also not uncommon but at these levels I would be surprised full value So what I am saying it could be variable and more fluid than D4E fixed one and only option , this could clearly happen but you cannot rule out other options unless you are inside Now whether you do this pre which gives flexibility and speed or post which is quantified and less agile is up to any potential offerer. Do not invest more than you are willing to lose, and do not listen to these boards but use them to conduct your own research., Armbar included. GL

[forwood] 02/7/2024 09:16

Armbar is quite right, there are always other options. Someone might look at the company's current £70m market cap, £462m net debt, and the £6.34bn (US$8.1bn) order book and conclude there is an opportunity here. Oil services remains an attractive market as evidenced by the Wood Group takeover, particularly when involved in transition to renewables. Potential profit margin of 15% on the order book could generate c £950m, more than enough to eliminate debt.

[armbar] 02/7/2024 09:13

Just an opinion , be naive to not consider critical thinking and close off that major players in this sector will not have noticed the financial situation of Petrofac and think ... how much. Halliburton , Schlumberger , Andoc, Saipem, etc Along with major Private Equity who may also be exploring So a skills shortage , well , PFC 9000 employees , first of its kind hydrogen , carbon capture and scalable wind solutions in global demand, TenneT contract and the end of the torturous Thai oil project in sight, numerous feed studies and data., 8bn backlog , 60bn pipleline. Discounted cash flow. Not saying it will definitely happen pre or post re structure but logically if you were them , would you enquire , I wouldHence situation could be more fluid than we think imo GL

[general george] 02/7/2024 08:20

Petrofac have told us that a D4E is being concluded. Once the banks, a dozen different parties, sign off on the restructure a bond holder lock-up will be announced. If the banks don't sign off it is curtains. Some assets are being sold as part of this restructure.

If anyone can read that's what every RNS says. There is certainly no take over.

[geckotheglorious] 02/7/2024 06:52

FFS Armbar.

"The Financial Restructure ... is currently the only option to secure the future operations of the Group and active discussions are ongoing. The realistic alternative to the Financial Restructure is insolvency." [my bold]

This has been the ONLY option for at least the last three months?

What has changed in the last three months, other than essentially a debt default given non payment of the coupon - which has now been extended for another month.

The ONLY option is still a D4E

The outcome of the debt restructure talks will be a D4E because there is , nor has there been,any alternative for a while.

You're in denial and playing semantics bollux.