Petrofac Share Discussion Threads

[pogue] 07/1/2019 11:16

hxxps://www.hl.co.uk/shares/trading-commodities/brent-crude-oil

[andyc147] 07/1/2019 11:09

Anyone know why the decent rise today?

[pogue] 05/1/2019 11:26

bookbroker I disagree with your synopsis of shale activity having let up, see below. another short term bullish signal and any rise back up in activity will push up drilling costs in an industry which as you correctly say is badly in debt, I actually think its a doomed industry as banks continue to fund companies that are borderline profitable, and all the sweet spots have been now drilled so the end is in sight, the only thing keeping them going is the fact banks would lose all their money if they pulled the plug at least by supporting them they get interest payments and the hope of selling to another mug.

hxxps://www.dallasfed.org/research/surveys/des/2018/1804.aspx
The index for utilization of equipment by oilfield services firms dropped sharply in the fourth quarter, with the corresponding index at 1.6, down 43 points from the third quarter. This suggests utilization rates remained relatively unchanged from the third quarter. Input costs on the services side increased but at a slower pace as the index declined from 46.6 to 36.7. Meanwhile, the index of prices received for oilfield services fell sharply from 23.2 to zero, suggesting prices were unchanged on a quarter-over-quarter basis. Looking at the special question responses, operating margins declined for oilfield services firms in the fourth quarter relative to the third.

[wallywoo] 04/1/2019 10:18

What debt? Net debt is forecast to be $250M at year end (down from $600M in Dec 17, and $900M in June 18). That is tiny for a £1.7B mkt cap company with $6B in turnover.

I believe they will wipe out debt by the mid 2019, a very strong Oil services company.

[bookbroker] 04/1/2019 10:12

Can’t see the US shale production letting up, they need the cash flow to service the debt, and POI still high enough to ward of the threat of bankruptcy in many smaller entities, when OPEC cuts come through it will stave off that threat of lower for longer oil price! That will continue to keep a lid on price of oil.

[pogue] 04/1/2019 09:44

The problem is everyone is predicting a recession next year which means less oil consumed which means lower prices. The stronger $ by the way is bad for oil price due to the fact countries have to pay more to buy a barrel due to the exchange rate so strong $ is bad as well. There should be a rise in the price of oil first quarter though due to the OPEC+ cuts starting to come into play and the outside bet that Trump will actually put sanctions on Iran in April when they are next up for review.

[wallywoo] 03/1/2019 13:03

Bgt a load this morning. I reckon oil has bottomed in Dec, and will turn now. Also the strong $ will help the divi in £. Once the trend is reversed this will move quickly back to £6 IMO. The trading update was great, and with $15B of tenders out, there is lots of possibilities for good news

I guess you have the SFO cloud hanging over it, but at this price it is all priced in, and they must hear news soon with what they will do, so there is always the possibility of a relief rally too.

Remember the CEO bgt £10M worth of shares (over 2M shares) back in March at prices higher than this

[ddubzy] 21/12/2018 07:14

PFC on the ITT list for INFA, excited about that project and would love PFC to win the contract!

[eodfire] 20/12/2018 11:10

Pfc holding up well from lows considering the current climate.

[charlock] 18/12/2018 11:41

18 December 2018
Petrofac awarded Ithaca construction and commissioning contract

Petrofac’s Engineering and Production Services (EPS) business has secured a construction and commissioning contract with Ithaca Energy (UK) Limited (Ithaca) valued in the region of US$10 million.

Under the terms of this reimbursable contract, Petrofac will be responsible for the topsides construction and commissioning works that are to be undertaken on the Ithaca-operated FPF-1 floating production facility, for the tieback of the BP-operated Vorlich field subsea development in the Central North Sea.

As Duty Holder of the FPF-1 asset Petrofac will fully integrate its operations and construction teams in support of the construction work scope, which is due to commence in January 2019 and complete in 2020.

Nick Shorten, Managing Director, EPS, Western Hemisphere, said: “I’d like to congratulate our team on securing this fantastic project which builds not only on our existing relationship with Ithaca Energy, but our wider portfolio of brownfield engineering and construction projects.

“Our track record for effective project delivery, combined with our operational knowledge of the FPF-1 asset, will enable us to deliver an integrated technical solution aligned to our client’s project and commercial objectives. We very much look forward to supporting development of the Vorlich field and continued investment in the North Sea.”

[cinquepercento] 18/12/2018 11:35

Thanks,Fuji99.

[fuji99] 18/12/2018 11:15

Cinquepercent - Nice to see you took some profit. In any case PFC looks promising as their debt is very low compared to others in the same sector. In addition, their business looks very solid as they flagged it up today. The only thing they need to clarify now is the progress in the investigation. If everything is fine or not too costly - which was already factored in the price - , the share price will fly straight away. PFC is definitely a solid company.

[cinquepercento] 18/12/2018 11:00

Fuji99: Re:Dow Jones and Nasdaq and looking promising.

I am glad to hear that,Fuji99,however this morning,I have sold the Petrofac shares that I bought yesterday and taken the profits as it was only a small amount.

I am holding plenty of Petrofac, with my break even, way up at 5.5.which is a nuisance as it is tying up all my main cash leaving me only a small amount to trade with at the moment but I am gradually building up the remaining cash by day trading it for useful profits.

So lets see how the day goes.

Edofire and Wolfhound. It is good to hear that you both see things looking positive for Petrofac in the near future.

[wolfhound1] 18/12/2018 10:43

With Brexit going the way it has and sterling so weak, PFC share price at something like 4.4 times future earnings with virtually no debt and a strong order book is likely to come under the M&A spotlight in 2019 IMHO

[eodfire] 18/12/2018 09:11

Trading update received very well. Bucking trend of oil sector. Very encouraging.

[fuji99] 18/12/2018 08:51

Cinquepercento - The DOW/Nasdaq Futures in the US look promising for today.
Could it be the start of "a Santa Rally" for the markets too as all indexes lost billions for the last few weeks. In addition, the Fed may say something positive this week to help/reassure a bit the markets (maybe to stop raising rates for the time being or even reducing the probability for a rise).
We hope so ...

[cinquepercento] 18/12/2018 08:42

Yes,Fuji99, the oil prices seem to be the culprit.

[fuji99] 18/12/2018 08:33

Cinquepercento - Every oil services company chart has a similar trend from, as you rightly spotted, early October. A total free fall. Possibly coincided with the drop in oil prices ?

[cinquepercento] 18/12/2018 08:20

Riviera:RE:oil prices 1st October:

Thanks for checking.

Fuji99,MidasX and EdmondJ

It is a nice trading update.

It will be interesting to see what price we see on this today but oil price down to ...58.48 at the moment.

[edmondj] 18/12/2018 08:11

The business is certainly resilient; backlog sustained at $10.2 billion; can the stock buck currently weak sentiment in the oil market though?

[fuji99] 18/12/2018 08:09

Excellent update in the midst of hard times ! A good achievement for PFC.

[midasx] 18/12/2018 07:56

Good trading update with net down to $250 million.

Expectation of multiple new contracts in the new year.

[riviera1069] 17/12/2018 17:29

Look at price of oil chart from 1st October 2018.Looking to get in after trading update in the morning. Gl

[cinquepercento] 17/12/2018 16:36

Fuji99:


Re:HTG :Hunting PlC?

I read the RNS re:end of year trading statement:
I see what you mean,in that it does not look good.


It seems to me that Hunting PlC has been coming down in a more or less straight line from around 820,commencing around 1st October this year.
It seems that Petrofac has been coming down in a more or less straight line from around 660,also,commencing around the 1st of October, so what happened on the 1st October?