Petrofac Share Discussion Threads

[knowing] 13/2/2019 16:10

Balyasny Asset Management 0.41% -0.10% 11 Feb 2019

Well they are closing

[wardy333] 13/2/2019 08:10

A/Ts struggling today to keep this down.

[ammu12] 12/2/2019 21:08

Large UT close. Maybe gap up open tomorrow

[notimpressed] 12/2/2019 19:27

from the above, if this is legal sir phillip greed and dominic chappel
should both be hanging from the nearest lampost

[red_shed2000] 12/2/2019 18:53

Well to partly answer my own question, this would suggest it's not possible....note this is UK law. Could be that this is not directly relevant to PFC's case though?

Shareholder claims

A director owes their duties direct to the company, and only the company can complain of any breach. Shareholders have no right to claim against a director for any loss they believe they may have suffered as a result of breach of duty. However much their shares have dropped in price, they cannot recover that loss of value from the directors they hold responsible.

[red_shed2000] 12/2/2019 18:44

Anyone know of any successful lawsuits under similar circumstances?

Just trying to get a feel if this is common or breaking new ground.

Thanks

[knowing] 12/2/2019 17:42

Clean cut reporting

[knowing] 12/2/2019 13:41

Also at JPMorgan Cazenove, analysts downgraded their rating on Petrofac after a former employee pleaded guilty to bribery in a larger than expected amount of recent contracts wins.

Last week, David Lufkin, former global sales chief, pleaded guilty to eleven counts of bribery as part of the Serious Fraud Office's ongoing investigation into the company. The SFO said the charges related to the making of corrupt offers to influence the award of contracts to Petrofac worth in excess of $3.5bn dollars in Saudi Arabia and $730m in Iraq between 2012 and 2015.

JPM Cazenove recognised that "there is a value case to be argued" with the shares trading for just around five times forward earnings and with a dividend yield of around 7.5%, with no charges been brought against the company "and that PFC’s stance against the investigation can yet be proven correct".

However, the analysts downgraded to a 'neutral' stance from 'overweight' due to the "risk of further escalation" and "a need again for reassurance that PFC’s competitive position is not diminished".

After this SFO development, the analysts felt Petrofac, as it did after the SFO probe initially emerged in 2017, "needs to show that customer confidence remains".

As such, they have "less confidence in the outlook" and cut the target price 24% to 500p, though remain reassured that the backlog provides backing for the current value and the balance sheet is getting stronger.

To watch at the company's participation on the Marjan project, in Saudi Arabia, and any further developments in the SFO case.

[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.