Petrofac Share Discussion Threads

[midasx] 26/7/2024 16:32

Nice timing for the RNS :-))

[mj19] 26/7/2024 16:29

PETROFAC CURES CONTRACT DEFAULT AND ANNOUNCES EXTENSION TO FORBEARANCE AGREEMENTSource: EQS Regulatory NewsPetrofac Limited ( PFC)PETROFAC CURES CONTRACT DEFAULT AND ANNOUNCES EXTENSION TO FORBEARANCE AGREEMENT26-Jul-2024 / 16:02 GMT/BSTPress Release 26 July 2024 PETROFAC CURES CONTRACT DEFAULT ANDANNOUNCES EXTENSION TO FORBEARANCE AGREEMENT Agreement with key EPC customer Petrofac today announces that it has reached an alternative agreement with a key customer with respect to the performance guarantee requirements under that contract. The agreement cures the default notice received from that customer, which required a performance guarantee to be posted by 16 June 2024, as outlined in the company's 2023 accounts. The Company continues to require performance guarantees for certain of its other recently awarded contracts. Further announcements will be made as appropriate. Forbearance agreement with noteholders The Group has extended its existing forbearance agreement in respect of the non-payment of the interest coupon on its senior secured notes from 25 July to 23 August 2024. The forbearance agreement is entered into by an ad hoc group of noteholders representing approximately 47% of the outstanding senior secured notes and certain other acceding noteholders. It provides assurance that these noteholders will not take any action in respect of the non-payment of the coupon until at least 23 August 2024, providing additional time for the Group's financial restructuring to be progressed.Further announcements will be made as appropriate. ENDS For further information contact: Petrofac:James Boothroyd, Head of Investor [e-mail] Sophie Reid, Group Director of Communications and [e-mail] Teneo (for Petrofac):[phone] NOTES TO EDITORSPetrofacPetrofac is a leading international service provider to the energy industry, with a diverse client portfolio including many of the world's leading energy companies. Petrofac designs, builds, manages and maintains oil, gas, refining, petrochemicals and renewable energy infrastructure. Our purpose is to enable our clients to meet the world's evolving energy needs. Our four values - driven, agile, respectful and open - are at the heart of everything we do. Petrofac's core markets are in the Middle East and North Africa (MENA) region and the UK North Sea, where we have built a long and successful track record of safe, reliable and innovative execution, underpinned by a cost effective and local delivery model with a strong focus on in-country value. We operate in several other significant markets, including India, South East Asia and the United States. We have 8,500 employees based across 31 offices globally. Petrofac is quoted on the London Stock Exchange (symbol: PFC). For additional information, please refer to the Petrofac website at www.petrofac.comDissemination of a Regulatory Announcement, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.ISIN: GB00B0H2K534Category Code: MSCUTIDM: PFCLEI Code: 2138004624W8CKCSJ177Sequence No.: 336890EQS News ID: 1955365 End of Announcement EQS News Servicefncls.ssp?fn=show_t_gif&application_id=1955365&application_name=news&site_id=airport_aws

[action] 26/7/2024 16:25

I hope it is not a blip again

[mirabeau] 26/7/2024 16:04

price spike

[investtofly] 26/7/2024 11:58

Not even a whimper

[ih_759282] 26/7/2024 02:25

I think the creditors are doing the DD on how "wonderful"and profitable the experience of the other creditors taking over McDermott International is going....as its fighting for it's life in court at the moment with some horrific lawsuits hanging over it's head,winning an ego battle in punishing a megalithic energy giant with work stoppage while simultaneously making enemies with them for ..life... with them isn't just insanity .... It's foolish ..considering the contracts they offer are the very lifeblood of it's existence....and it's expensive.... to the tune of $500 million sought in damages.Add in the liabilities of the Colombia debacle and catching a tiger by the tail comes to mind.it's easy to get fixated on the large contracts and dollar signs and envision yourself swimming in pools of money but every cent is earned the hard way,it's not like flipping real estate by trimming some grass,bushes,having some lop jobs throwing around new paint and faux flooring down,it's an entirely different creature.Turning into a Frankenstein company of hired mercenaries led by savvy but overly ambitious creditors that are diametrically opposed to not losing money as their primary beacon light of vision can permeate a toxic culture of narcissistic nepotism and a poor attitude that permeates into the culture and ultimately the balance sheet,only hope might be Mr deep pockets ex CEO formulating a solution,nearly 20 years of running this company from a small Texas run down operation to an international powerhouse has to count for something,although it quickly got ran into the ground because mistakes turn into millions and then billions of lost revenue,it's a pirate and shark infested sector not for the weak hearted with every competitor and customer out to slice your throat at the end of day,it's like a gladiator death match and the winner gets to fight another gladiator death match as a reward,with a rulership class that has the privilege of having unlimited cash to print out of thin air,so inevitably they get to pick and chose which companies they wish to absorb into their worldwide empire portfolio,with army on top of armies to back them up,very smart these Pharaohic masters are

[andymunchkin] 25/7/2024 16:01

VG VG vErYgOOd vErYgOOd

[investtofly] 25/7/2024 09:46

All VERY quiet

[ih_759282] 24/7/2024 14:26

It's next to impossible to run this kind of company with a sterling track record,not with cut throat competitors,and constant dealings with political entities,the "very best "run companies have connections not available to the under initiated , I can't see the high lords of finance wanting to take over the company and deal with the headaches of the beast,they are too smart for it,requires high salaries for specialized skill sets, expensive engineering dept,upkeep on ever changing rules/regulations, blueprints and surveying, computer upkeep and IT costs,electrical codes,accounting,tax implications ect.building & construction knowledge,Even the field laborers require training and certifications to be specialized to handle multiple trades,it's time and capital intensive,tons of paperwork, safety protocols, insurance, international expenses and navigating different rules,billings,planning, inventory management,meetings,union strife and it's own complexities,it's weather delays, inevitable injuries,cost of training new people,wrong parts delivered, litigation,constant retrofitting and fabrication,permits, avoiding Environmental violations with politicians looking for handouts every step of the way,machinery break downs,logistics,trying not to underbid with inflation constantly in flux muddying up estimations,it's a nightmare that takes a certain type of breed to run the ship, borderline mentally ill IMHO ,cutting corners to get access to capital to alleviate anxiety is only human,it's not like taking over an apartment complex and passing off responsibilities to a super and manager then off to frolicking the golf and the country club,if they part everything out they would be lucky to get pennies on the dollar from other contractors smelling blood in the water,there needs to be more than concrete proof Petrofac can get its act together and right the ship after its gaffes,it will be interesting how this pans out,not looking peachy for shareholders even after 85% haircut,the fact the employee reviews of working there being favorable is testament of the company going out of its way to value its employees,which is commendable in a world that usually treats them like P&D penny stocks.This is why banksters rule the world,deal with this migraine and fork over 10% and a cup of blood,just don't spill any on their Persian rug

[general george] 24/7/2024 08:31

I think the standstill agreement with bondholders ends tomorrow. I feel as expecting some news this morning!

[pogue] 23/7/2024 19:12

Jaknife
they have 3 engineering offices in UK, Aberdeen, Yarmouth and Woking. Not sure how many are working at them currently expect the Aberdeen and Yarmouth offices on a skeleton staff due to recent governments wanting to shut down UK O&G production through taxation and Woking does have some work but have not heard of them recruiting for a long time so assume its not thriving either.
Edit
I am pretty certain no UK governemnt are going to give money to them mind you after they were proesecuted for not stopping bribery by their employees.

[jaknife] 23/7/2024 16:49

Why should they guarantee Petrofac's contracts? It's not a UK company, its contracts are primarily outside of the UK. Other than a few employees that work in an office in Mayfair there's no material connection to the UK.

[investtofly] 23/7/2024 16:36

With The Government ruling out guaranteeing Harland and Wolff contracts, I don't think they will be guaranteeing any PFC contracts IMO

[pogue] 23/7/2024 08:20

Wow for a board that has a lot of incredibly stupid posters that's a new low. Another for the filter.

[andyadvfn1] 23/7/2024 07:14

Company heavily involved in Russia and so it's toast following Ukraine invasion.

[mj19] 18/7/2024 13:22

Will it go up from here as it's not going down

[forwood] 17/7/2024 16:22

What I find interesting here is how the Sp has stayed within the band of c 12 to 13.5p for over a month.. if this was such a slam dunk sell, why hasn't it fallen below 10p?

[warranty] 15/7/2024 22:57

Fair enough JakNife and it may well be zero but if it isn’t, even 4p, rid of the issues it’s currently facing it will soon get back to where it is now once confidence returns. All investing is a gamble and I’m so far under water here I may as well stick with it even if it means risking losing everything.

[jaknife] 15/7/2024 22:06

warranty,

”I can’t see the point in my selling now because even if there is a DFE and the shares drop to 5 or 6p it will soon rebound back to this level and higher thereafter. It may take a while but I think best to just hold on.”

FWIW, I no longer think that a D4E swap is the most likely outcome. The banks and bondholders are obviously fighting between themselves, trying to secure the best possible outcome for themselves to the exclusion of the other party. In such circumstances shareholders become an irrelevancy.

Hence I would put:

Probability of wipeout (0p) for shareholders > 50%

Probability of D4E swap (max 4p) < 50%

And the longer it drags out the more likely that shareholders get nothing.

JakNife

[general george] 15/7/2024 19:43

Wonder what sort of return on break-up? They don't really have assets bar the order book. Shame a few careless lump sum jobs killed them. Say after me engineering contractors..... Re-imbursable only on EPC!

[warranty] 15/7/2024 18:40

I can’t see the point in my selling now because even if there is a DFE and the shares drop to 5 or 6p it will soon rebound back to this level and higher thereafter. It may take a while but I think best to just hold on.

[jaknife] 15/7/2024 08:47

A fellow conspirator points out that the bond price is now 15.75 bid:



They claim that the bondholders are resigned to a break up deal with everything being sold off.

JakNife