Petrofac Share Discussion Threads

[gerry hatrick] 31/7/2024 10:44

What is the significance of Amman Asfari stepping down from his non-exec role today .

[action] 31/7/2024 09:41

Dead cat bounced done and dusted

[999rp] 31/7/2024 07:03

Yes this is an odd one we would expect it to rise but generally falls then a spike. The financials are interesting makes me wonder why the share price is so low

[sbb1x] 30/7/2024 13:37

Parasites dragged this back down. Love to see a take over offer come in

[action] 30/7/2024 12:28

In auction

[ih_759282] 29/7/2024 13:26

Takes some brass to be an investor here

[dipa11] 29/7/2024 12:56

Halfway and 13 millions plus turnover.

[action] 29/7/2024 12:19

In auction

[covid 19 deal] 29/7/2024 10:17

Why directors arent buying this sinking ship....another debenhams

[halfpenny] 29/7/2024 08:13

Wit a fool as further falls due...too Risky

[dipa11] 29/7/2024 07:13

Bought few more today as FOMO. As it's looking more attractive. DYOR. Good morning

[halfpenny] 29/7/2024 06:40

Not looking good as short extension with a Holiday month August!!!

Too Risky as no real news given!!

[bmwman3] 28/7/2024 19:16

Spelling difficulties maybe?

[wellbutpoor] 28/7/2024 18:25

International Securities Lending Mafia

[action] 28/7/2024 18:17

Isla meaning?

[wellbutpoor] 28/7/2024 16:56

Stock being recalled via ISLA.

Could get rather interesting tomorrow....30p not unreasonable at this juncture...

[mirabeau] 28/7/2024 12:49

Petrofac Share Price Soars, Shorts Scramble to Cover Positions

By Bryan Hardy / July 28, 2024

Embattled oil services firm Petrofac’s rapid surge in share price on Friday, up more than 70%, has added pressure on shorts to close their positions, with markets set to watch the opening on Monday for signs of a renewed squeeze.

The stock has been one of the most shorted on the London Stock Exchange (LSE) but shorts are now in retreat with total positions now falling below 10%. Positive news regarding the company’s contractual and financial positions late on Friday spurred a a rapid increase within the last 30 minutes of trading. The stock closed at 22 pence as a result, a remarkable rise from the 12.6 pence near the start of the day.
Contractual Relief and New Agreement

Petrofac announced on Friday that it had reached an alternative agreement with a key Engineering, Procurement, and Construction (EPC) customer, pertaining to performance guarantee requirements, effectively curing a default notice received from the customer. The default notice had necessitated a performance guarantee to be posted by June 16, 2024, as stated in Petrofac’s 2023 accounts.
Impact on Short Positions

Petrofac stock has been heavily shorted throughout the month, following the delisting of shares from the London Stock Exchange, however Friday’s rally will have forced several short sellers to reconsider their positions, adding further upward pressure on the price. With the share price threatening serious losses for remaining short positions, Monday’s trading is expected to see a scramble among short sellers to close out their positions, potentially driving the price even higher.

While further challenges lie ahead for the firm’s strategic outlook, the latest resolution clearly instilled confidence in investors about Petrofac’s ability to navigate its contractual obligations successfully, signalling support for ongoing operational activities and potential future revenue streams.
Extension of Forbearance Agreement

Petrofac has now extended its existing forbearance agreement concerning the non-payment of interest on its senior secured notes. Originally set to expire on July 25, 2024, the forbearance has now been extended to August 23, 2024. This agreement involves an ad hoc group of noteholders representing approximately 47% of the outstanding senior secured notes, along with certain other noteholders.

The extension provides Petrofac with crucial breathing room to advance its financial restructuring efforts without the immediate threat of noteholder action. This assurance is pivotal for the company’s ongoing efforts to stabilize its financial position and negotiate better terms for its obligations.

Petrofac’s recent developments point to a more stabilized outlook for the company. The resolution of the performance guarantee issue and the extension of the forbearance agreement are crucial steps in mitigating immediate risks and providing a clearer path forward for financial restructuring. Investors will be keenly watching Monday’s trading as the stock reacts to these positive signals and the potential further covering of short positions.

The combination of contractual relief, financial restructuring progress, and the resultant short squeeze creates a strong upside potential for Petrofac’s share price. As the company continues to address its challenges head-on, the market sentiment may shift positively, reflecting growing confidence in Petrofac’s turnaround efforts

[sellhighandbuylow] 28/7/2024 10:14

This just happens to be the most shorted share on the entire London Stock Exchange and it has been, for some time.

The smart money has been shorting this all the way down from 120p+ per share.

Will it go bust ? maybe.

Will a huge Debt for Equity swap hand control over to the Lenders ? quite possibly.

PFC shares are only suitable for HIGH risk gamblers, willing to lose, EVERYTHING

[sos100] 28/7/2024 10:04

Don't know full history here but I guess it's heavily shorted ,hence some panic?

Guess it will climb to around 28p and settle 25p?

[action] 28/7/2024 07:47

I am long. You can not be far from the the truth. I do not have any trust now in co futher. They could have got bigger right issue at 115p which would have avoided this situation.

[ny boy] 28/7/2024 04:06

Not an investment

[ih_759282] 27/7/2024 23:54

This isn't the type of business that can be run effectively by creditors, not even if they hire a highly competent CEO to run it for them,the disconnect of their knowledge and the inner workings of the intricacies of this highly specialized realm of the Oil&gas construction service industry is too wide a chasm,a CEO won't be able to conduct the business properly if he has to secure votes of a room full of people relating to matters they won't fully understand,the customers are too powerful to push around and the penalties for mistakes are astronomical,the customers are ultra powerful entities with vast sums of cash and legal teams capable of sinking a company with loose ends,too many chiefs,too many egos,too great a risk for a crafty CEO to bilk the company dry,selling everything fire sale price is problematic,I think the end result is bondholders and shareholders taking a few lumps but this company survives, the McDermott International takeover by creditors is not going very well despite having a roster of powerful financiers at the helm,it just doesn't work.

[qantas] 27/7/2024 23:33

Action fraud not desperate are you in your doomed to failure shorts.