Petrofac Share Discussion Threads

[pogue] 29/6/2020 09:45

Can you provide a link for the SFO ending investigation into PFC?

[topazfrenzy] 29/6/2020 09:05

Added more, the SFO ending its investigation, whatever the verdict, could be the start of a massive re-rate here, I do not want to miss out. I read that there is a UNAOIL hearing at the Old Bailey today, in Court No 1.

Also, the update was sober and the strategy responsible, with cost saving a major priority, it really is a great company this, totally undervalued. As they say, seek out the best companies at rock bottom valuations, buy and then wait.

GLA

[action] 26/6/2020 15:18

84838 shares

[action] 26/6/2020 15:17

8838 shares bght at 185p just now

[topazfrenzy] 26/6/2020 14:11

Grabbed a few more on the dip

[topazfrenzy] 25/6/2020 11:16

Time to load up on this one, do not miss out

[kipper62] 25/6/2020 09:41

BERENBERG RAISES PETROFAC PRICE TARGET TO 250 (230) PENCE - 'HOLD'

[pogue] 25/6/2020 08:43

Good news or bad news depends how you look at it.
One of the large contractors KBR, PFC are not in the same league as the big lads, has decided to stop bidding on fixed price EPC contracts. This means there will be more contracts available for less companies, the bad news is they say there is not enough profit for the risk and that is why they are stopping. It all ties in with clients getting tighter over the years and always wanting changes incorporated for nothing as they always claim it is in the original scope and I have seen a project get to the stage where the contractor and the client only talk via lawyers at the late stages of the design phase, to be fair it was an Arab client who as I have said before are a right pain for costs, however no fixed price job these days is won by a company that is not a bit desperate for work and willing to take a risk and KBR have decided to move more to towards their services arm and in particular government contracts, mainly running US bases round the world etc, to avoid having to do those bids.
To me its bad news as it means the profit margins are not going to be good in the future and KBR are just getting out first.

[topazfrenzy] 25/6/2020 08:23

Silly not to grab some more, so I did

The SFO dropping the case could be the next big event here, so I am loading up on these big dips

[action] 24/6/2020 18:16

Nothing happens in the morning till dow opens.

[topazfrenzy] 24/6/2020 09:50

topped up :)

GLA

[topazfrenzy] 24/6/2020 09:42

Glad I dumped some at 210 to hopefully buy back lower, looking like the opportunity is almost there

[topazfrenzy] 24/6/2020 09:04

So I was right to point out the sudden selling yesterday at one stage, someone had been given the nod to offload

anyway, the update wasn't bad imo

may add some more if it keeps drifting lower

[killman2] 24/6/2020 08:08

neutral update...business as usual till court case outcome known methinks...imo

[warranty] 24/6/2020 08:06

Thanks apogee, trading statement today made grim reading and don’t currently give any reason to buy or add yet it seems. No mention of and legal affects so looks like we will carry on in the dark for much longer yet.

[pogue] 23/6/2020 21:13

PFC are not on trial just now its Unaoil employees that are and some were found guilty last year in the US of bribery plus one plead guilty last year in a UK court to bribery so not looking good for the lads in this case on the past track record.
Anyway if PFC get out of this at a later date then yes Saudi and Iraq will happily deal with them they all understand corruption but its all about appearing honest so if proven clean in court PFC can bid I would say.
In my dealings with Arab clients its all about the cost never mind the quality or even good engineering in many cases so if PFC can come in low to get the first contract rolling then they will be fine, I don't expect their margins to be so good on that early contracts though but that's not the point its about getting a foot in the door.
As for a dramatic shooting up of the price if a not guilty verdict is found at a future date consider what happened with the ADNOC project recently awarded then shelved. $1.6 billion contract hardly moved the share price up however losing it caused a large fall. Suspect any not guilty verdict will not make much of a difference could be wrong but I am not putting any money on it. I am waiting till the oil price recovery is more certain before putting any more cash in here as that is where the money will be made investing in this share, and has been in the past. All I see just now is friends getting made redundant so recovery in this sector is not on the horizon yet.
All IMHO.

[warranty] 23/6/2020 18:43

That’s what concerns me crimes, will Iraq and Saudi return to awarding PFC contracts even if the SFO case is dropped? I suppose we will only find out in due course but in the meantime let’s hope the trading statement tomorrow is positive.

[1cripes] 23/6/2020 15:08

In 2017 the PFC share price halved when the SFO announced their investigation. It’s possible I suppose that the reverse could occur? Got to sort out forward order book and be able to win business in Saudi Arabia and Iraq though.

[warranty] 23/6/2020 13:52

I’ve held this for years and have traded a few and averaged down and now sit at 450p average. Anybody any guesses what the price would be if the SFO case was dropped or whether a bad result is already in the price? I’m overweight here already but have a feeling the next news could be good and am tempted to add whilst it’s at what seems to be a bargain price. Not looking for advice just an opinion from the more knowledgable posters on here.

[ammu12] 23/6/2020 12:21

Agreed shouldn't be sub 3 even with sfo issues....The sfo is been going on since this was 7-8. Oil prices have recovered since so should start to get some more contracts soon...

[topazfrenzy] 23/6/2020 12:20

This is worth £3.50 all day long

[topazfrenzy] 23/6/2020 12:19

Ammu, I never sold this one, I actually added earlier

[ammu12] 23/6/2020 11:59

Rising now Come on pfc

[ammu12] 23/6/2020 11:44

You bought back now lol?

[topazfrenzy] 23/6/2020 11:36

Still the best value big cap out there