Petrofac Share Discussion Threads

[knowing] 12/2/2019 13:34

Petrofac said that its engineering and production services (EPS) business has bagged a well services contract worth up to $95m from Siccar Point Energy for its operated assets West of Shetland.

[wayne_d_roberts] 12/2/2019 13:04

Yep, essentially non-British companies. It is a draconian piece of legislation, with significant vagueness. It goes well beyond most other countries in its approach....and as a British exec, working for a foreign company overseas, you are exposed to criminal action under the Act. Typical virtue-signalling by modern politicians who don't give a fig about the performance of our companies or economy.

I am not saying that bribery and corruption are not real issues. They need to be addressed, but in a coordinated fashion to maintain a level playing field...at the moment, UK (and US) companies are uniquely exposed and will therefore suffer.

[bouleversee] 12/2/2019 12:53

So in future it is firms in countries who aren't subject to the Bribery Act who are the most likely to get the juicy contracts. That's possibly more worrying than the potential fine.

[andyj] 12/2/2019 12:41

You can't blame the shorters here! He has admitted the charges and worryingly the investigation is ongoing. It is an easy target. Is it oversold? Probably, but more importantly no one knows at what price the majority of the market will consider it so. I will watch and wait.

[wayne_d_roberts] 12/2/2019 12:33

To now, Rolls-Royce’s fine is by far the largest imposed in UK criminal enforcement history. It was also nearly double the highest fine ever imposed by the FCA for financial crime (£284 million fine imposed on Barclays for FX market manipulation).

RR fine was £497 million and reflected multiple bribery allegations in multiple countries over 24 years. This fine represented around 3.5% of RR market cap around that time.

Even if a fine was doubled for PFC...to, say, 7% of the market cap just before the announcement, this would represent a fine of around £205 million....and RR paid over 5 years. This would be much more sensible, as neither the courts nor the SFO are in the business of bankrupting British companies!

I guess the problem is that the bulk of RR activities occurred before 2010, when the Bribery Act was brought into effect...and the precedent under this Act is 250%-400% of the gross profits...

[wardy333] 12/2/2019 12:32

A/Ts will try and get this as low as they can,hard to beat machines in this game.

[bookbroker] 12/2/2019 12:24

Or keep it in your pocket, and spend it supping, u’d obtain slightly more pleasure!

[bouleversee] 12/2/2019 12:19

I'm feeling exactly the same way, whichever way it turns out, though the kids would probably lose even more. Am sick to death of it all. Might just as well put one's money on the gee-gees.

[wayne_d_roberts] 12/2/2019 12:09

The SFO investigation has now caused the loss of around £1.63 billion ($2.12 billion). If this is not overdone, I am going to stop investing, sell up and give everything to the kids...

[wardy333] 12/2/2019 12:04

Shorters are obviously trying for 370p or below, could be about time to load up if it goes that low.

[notimpressed] 12/2/2019 11:57

morgan stanley 16th jan 19

MS acknowledged that risks such as working capital and the Serious Fraud Office investigation are a concern for the market. However, it said these dynamics are increasingly understood and well reflected in the depressed valuation.

"The circa 3.5x EV/EBITDA for 2019e and 2020e and 8.0x price-to-earnings is a significant discount to peers such as Saipem and Tecnicas, despite superior return on equity and growth prospects."

[cielos] 12/2/2019 10:40

>>>>the fat lady hasn't sung yet

I wonder when that is going to happen, a few more pence down today as is reaching closer to June 2017 lows.

[notimpressed] 12/2/2019 10:33

AKO Capital LLP for AKO M aster Fund Limited .30% -0.24% 7 Feb 2019
AQR Capital Management, LLC 0.99% -0.03% 25 Jan 2019
Balyasny Asset Management 0.60% -0.10% 7 Feb 2019
BlackRock Investment Management (UK) Limited 1.17% -0.10% 7 Feb 2019
Marshall Wace LLP 1.10% +0.61% 7 Feb 2019
RYE BAY CAPITAL LLP 1.02% +0.56% 7 Feb 2019

Total 6.18%
.

[wardy333] 12/2/2019 08:18

Looks like the A/T machines don't know where to put this today , most O trades buys.But they are forcing this lower probably large shorts on this stock now.

[charlock] 11/2/2019 21:34

11 February 2019
Petrofac secures UK Well Services agreement

Petrofac’s Engineering and Production Services (EPS) business has added to its growing Well Engineering portfolio with the award of a contract from independent Exploration and Production company, Siccar Point Energy.

The three-year agreement, which includes options to extend, is estimated to be worth up to US$95 million over the term.

The contract includes provision of Well Operator and Well Engineering Project Management services including supply chain management, for Siccar Point’s operated assets West of Shetland. Under these terms, Petrofac will be responsible for all new well work and the ongoing integrity management of existing well stock.

Petrofac will also deploy its industry-leading well project management software, WellAtlas®* to ensure efficient and assured project delivery.

Commenting on the award, Nick Shorten, Managing Director for Petrofac Engineering and Production Services in the Western Hemisphere, said: “We are delighted to have secured this significant new scope with Siccar Point Energy and very much look forward to supporting them in successfully delivering their ambitious exploration, appraisal and development plans, safely and cost efficiently over the next three years.

“This award builds on our existing track record for delivering Well Operator and Project Management services for clients across the globe, but specifically West of Shetland, where we have significant exploration, appraisal and development experience.”

* WellAtlas® is a unique integrated software tool which supports the entire well management and delivery agenda, providing a comprehensive overview of projects.

[bouleversee] 11/2/2019 19:47

And are shorting. I think the name Elliott is involved.

[oohrogerpalmer] 11/2/2019 19:26

I find it ironic that the action they are taking will have the same impact on the share price that they are taking action over.
I assume most of the hypocrites they are representing have all sold out at a loss!!!!

[mj19] 11/2/2019 19:25

I wish when they announce stuff like this the fines come out soon. A fear of waking up on some news of the fine push it down further? Maybe better to wait till the dust settle to top up!!!

[bargainbob] 11/2/2019 18:49

It will fall to low £3 with all the uncertainty.

[bouleversee] 11/2/2019 18:19

I'm more concerned about the effect on the share price of the threat of legal action by some shareholders against presumably me and other shareholders. What a hornet's nest that is. Surely a bit premature as the fat lady hasn't sung yet and nobody has lost anything if they haven't sold, which was their own choice.

[mj19] 11/2/2019 17:21

Too much uncertainty regarding the fine

[cinquepercento] 11/2/2019 14:58

NY Boy: re:opportunity to acquire cheap stock:

Of course, there is always a risk but no risk,no profits.

[knowing] 11/2/2019 14:21

Petrofac Limited using EPIC/TICKER code (LON:PFC) has had its stock rating noted as ‘Downgrades217; with the recommendation being set at ‘NEUTRAL’; this morning by analysts at JP Morgan Cazenove. Petrofac Limited are listed in the Oil & Gas sector within UK Main Market. JP Morgan Cazenove have set their target price at 500 GBX on its stock. This would imply the analyst believes there is now a potential upside of 28.2% from the opening price of 390 GBX. Over the last 30 and 90 trading days the company share price has decreased 144.6 points and decreased 166 points respectively. The 1 year high for the stock price is 679 GBX while the 52 week low is 379.7 GBX.

[ny boy] 11/2/2019 13:32

I see an out of court settlement being reached and payment over 3-5 years, as long as they keep winning contracts, nothing much to be concerned about, apart from the opportunity to acquire cheap stock imo dyor as always.