Petrofac Share Discussion Threads

[timmy11] 26/6/2018 14:19

thanks gary

[garycook] 26/6/2018 13:53

Tim,Motley Fool

[timmy11] 26/6/2018 13:43

gary
where is that from

[paa65] 26/6/2018 13:41

Bought more at 527

[pogue] 26/6/2018 12:22

fujii90
where do you get your information on a takeover bid?

[garycook] 26/6/2018 12:12

Oil services company Petrofac (LSE: PFC) has suffered the perfect storm over the past five years. An investigation into its business practices by the Serious Fraud Office, coupled with the falling oil price, sent the shares into freefall towards the end of 2014.

But now the group’s outlook is starting to recover. Despite all of its problems, Petrofac has continued to win contracts from customers. Revenues have remained relatively stable, rising from $6.3bn in 2013 to $6.4bn. Although for the past three years, the business has reported a loss, which unfortunately forced management to slash Petrofac’s dividend by 80% last year.

Nonetheless, orders keep coming from customers. Today the firm announced that it has inked $1.2bn worth of deals in the first half of 2018 and has $20bn of bid opportunities up for award in the second half.

As it continues to win customers, it’s no surprise City analysts are expecting a modest recovery in earnings this year. After losing $29m last year, analysts have pencilled in a net profit of $285m for 2018, equivalent to 63p per share. They believe this higher level of income will give management headroom to increase the dividend 200% to $0.38 per share (29p) for a projected dividend yield of 5.4%.

What’s more, according to these estimates, the shares currently trade on just 8.5 times forecast earnings, a discount of 46% to the broader market according to my calculations. In my view, this is too cheap to ignore.

[ny boy] 26/6/2018 12:06

Added 526p, seems like long term opportunity imho, short term back above 560p

[notimpressed] 26/6/2018 11:35

given the share price drop, the conference call has gone
down like a ton of bricks

[callmebwana] 26/6/2018 10:54

I don't worry about the debit much because it is always going up or down. The sale of the ship for 192 Mil was not paid out in one go.It was to be paid in tranches.
They have to lay out money for the work they do before they get paid for it .
There is 20 BL of contracts to bid for, surely PFC will win some from that lot.
PFC are best liked in the Middle East.
What about the sale of North Sea assets?
What about a possible bid ? A large contract win, etc,etc. All to wait for.

Just a few days before the SFO,investigation was announced the Shorts increased their shorts,the day TU is posted the Guardian writes.Where is the FCA?? Not to be seen !!
I think all the above lot drink in the same Pub. :o/
Buy,sell or hold. Me ? I am just sitting on my hands.I have faith in the Co.DYOR etc.
GLA.

[fuji99] 26/6/2018 10:50

Pog - PFC will be taken over. Just a matter of time.

[ny boy] 26/6/2018 10:27

Buying some more in the 520p’s

[pogue] 26/6/2018 09:26

Regards profits going forward I would be guessing they will be a lot lower. A smaller order book and more fixed term contracts which are more difficult to make money on were being signed recently if I remember correctly therefore profits will suffer disproportionately I would suggest that is not helping. If the oil price holds in the $70s though there will be a lot more projects on better terms appearing which should help negate this. Is it a short term drop then rise as tasty reimbursable type new contracts are won? Who knows place your bets.

[paa65] 26/6/2018 08:39

Lets look at the facts - that as always give the big boys the opportunity to manipulate the share price down.Debt is up 50% to 900m.Backlog (order book) is down 500m.In the equivalent statement last year they stayed the range of net profit - but this year make no mention.So lots of fear reasons to force price down in the short term.Then take it back up again in anticipation of some contract wins from the 20Bn of opportunities noted in the statement.I remain long and will probably buy a few more today when I feel sell off has abated

[chelsea81] 26/6/2018 08:27

If you believe in the company and are invested here, buy more all the way down and all the way up. GLA

[callmebwana] 26/6/2018 08:24

5.9% Increase in contract wins then last year.Trading well within Market expectations and the share price is going South!! You could not make it up ?
The Guardian does a write up about PFC , just as PFC makes a trading statement ?
LOL. Makes you feel like everyone is against PFC share holders at times !!
GLA.

[lodgeview] 26/6/2018 08:11

A lot have it in for this company. Now The Guardian have wrote an unfavourable article!

[lodgeview] 26/6/2018 08:02

This is fuc$ing getting ridiculous!!!

[midasx] 26/6/2018 08:00

He knows that!

[garycook] 26/6/2018 07:46

NY Boy,PFC have already declared that there would be no more mention of the SFO in previous declarations !

[midasx] 26/6/2018 07:45

Positive trading update along with positive turn in the markets overnight. Futures up, oil up, seems like those wanting a fall may be disappointed!

[ny boy] 26/6/2018 07:42

No mention of SFO ongoing investigation about time it was put to bed so we get a clean bill of health and move forward with total confidence. At least no unpleasant surprises in the trading update!

[dahhad] 26/6/2018 07:13

Nothing to get too excited (or worried) about in this update IMHO.

[notimpressed] 26/6/2018 07:12

nothing to suggest reason to panic in the trading statement.
all in line with expectations

[ny boy] 25/6/2018 23:37

560p support broken, next support 460p but I very much doubt this would be revisited.

General market correction underway.

[warranty] 25/6/2018 18:59

Very wise thinking Salpara, until a decision by the SFO is made the share price could go anywhere. Obviously many of us on here hold positions from long ago and have averaged down but I think you're taking the best course until something is known. You might not make as much but at least you won't risk sitting at a loss like some of us here are.