Petrofac Share Discussion Threads

[cybernest53] 05/3/2021 00:28

From Baron Investments
@baroninvestment

"No unleashing of oil, demand rising, it’s hard not to see #BrentCrude trading in the $70s short term , a proper over-tightening prospect now. Front month Brent settles at $66.74 , +4.17%."



This is good news for Petrofac. It will further sustain their share price while awaiting SFO news and 2020 y/e results now due in April! GLA! :)

[lodgeview] 04/3/2021 17:05

POO up 5% and a poxy 2% rise here. Great if you are a shorter. They always win.

[wardy333] 04/3/2021 17:02

Oil price 5% up hence the Blue finish here.

[plunger2] 03/3/2021 08:52

Well if a sentencing becomes a review and further info is required then one must speculate that the SFO v Lufkin case has sprung a leak. And the leak has to do with the Supreme Court KBR finding. If so it could be that "Irregular" Section 2 notices were served and the SFO needs 4+ months to correct the situation. If they get the co-operation of foreign jurisdictions then they may be okay. But if they don't - look out above for the share price here.

The SFO are so quick to trumpet success and very slow at owning up to difficulties. I still think the FCA (another weak outfit) should be riding shotgun on the SFO for potentiially creating false markets. But hell will freeze over first!

JMHO GLA

[leoneobull] 03/3/2021 05:52

PFC debt is not that high, about 250m from recollection....when it turns over billions and used to be valued in the billions....BUT if a sizeable fine, yes, managing the balance sheet and cash flow becomes more an issue

[leoneobull] 03/3/2021 05:49

Shaf. Prior to CV, PFC was 350 to 450 and that was with the SFO case ongoing.....all depends if a fine is agreed, or the case falls apart. Either way, undervalued IMOV

[wigwammer] 02/3/2021 17:41

Mil. They've just got $400m from a bond sale. With oil rising, that may well prove enough. We will see..

[pepepepe73] 02/3/2021 17:33

Seems a little bit weak last days.

It's fully tied to brent price and it seems to be in a short term correction

[milanista11] 02/3/2021 14:51

wigwammer
Perhaps not new financing needed but capital increase as the balance sheet suffers immediately and the fine amount can be eventually settled over the years with cash flow.

[petrich] 02/3/2021 14:48

Its just bad timing as we all have been guilty of sometime in the past.

Long term won't make a jot of difference as for me at this price this is a great buy....

[wigwammer] 02/3/2021 10:43

Lowtrawler - not just the size of payment, but when they have to pay. Quite possible that payments are staged over several years such that no new financing is required.

[lowtrawler] 02/3/2021 09:49

Petrich, PFC had serious debt and balance sheet problems last year when a lot of their customers were delaying payments. They have overcome that period and strengthened their balance sheet since. It is not that they now have a strong balance sheet but they are no longer in any immediate trouble because of it. Their level of debt requires them to have healthy trading cashflows to service the debt, and ultimately pay it down. With oil pricing last year, it caused concerns. Trading is now picking up and so the worries are reducing. If PFC ultimately enter into a DPA with the SFO, depending on the size of payment, further financing could be required.

[petrich] 02/3/2021 09:06

An old article from Sept last year about Petrofacs debt....The end bit is a bit negative but they state Petrofacs net debt to EBITDA is 0.08 although with EBIT only covering interest expenses 6.5 times.

hxxps://simplywall.st/stocks/gb/energy/lse-pfc/petrofac-shares/news/does-petrofac-lonpfc-have-a-healthy-balance-sheet-2

So the point of posting this is that it’s a bit Chinese to me and to take anybody thoughts regarding Petrofacs debt....Good or Bad.....

[petrich] 02/3/2021 08:39

Be nice to hear of some new contracts which should come soon as oil rises and we all come out of the deep freeze....

Several major things play into Petrofacs hands if they all come to fruition...

If the Supercycle arrives it will need an enormous amount of work to produce infrastructure and products. All of which are Petrofac are business

Biden has committed to spending who knows how much on green energy. This will definitely be replicated through the world. Petrofac are in this field and I’m sure will look to expand their presence..

And of course the usual stuff we talk about which has a limited shelf life and may give us a huge bounce or a drop.

Personally with all we know I think it looks favourable for Petrofac but as always it’s what we don’t know that gets us.....

[wardy333] 02/3/2021 08:03

cyber,,, Yes not sure why his legal team did not bring up the Supreme Court ruling, and tried to challenge the evidence, not studied the case but its done and dusted now, the SFO will be pleased, still think they will hang this out as some sort of punishment to PFC, if they think Lufkin has a chance of getting off.,

[cybernest53] 01/3/2021 20:11

@Wardy333.... Depends on the evidence that was submitted I suppose. I'm sure Bonds' legal team would have taken any recourse, especially if evidence submitted was deemed inadmissible. I suspect in this case it wasn't evidence obtained from overseas (or could be evidence submitted prior to the precedent set by the KBRcase?) but based on evidence already held, particularly the evidence gathered by the DoJ and US Authorities in relation to the Ahsani family.

As to whether this is the end of the Unaoil case, I'm not sure but it looks like it from the SFO case page:

[wardy333] 01/3/2021 18:18

What I can't understand is why Bonds legal team have not asked for evidence to be made inadmissible, they have just let the case roll on, so makes me think Lufkin will get the same or am I missing something.
Very strange why the delay and for so long on the Lufkin case, SFO have concluded the Unaoil case by the looks.,

[leoneobull] 01/3/2021 17:55

PFC 2, SFO 0

[cybernest53] 01/3/2021 17:34

Exactly Petrich... As I conjectured in my post on 19th Feb (16627):

"The Lufkin adjournment came a day or so after the SFO were ruled against in the KBR Case on 5th Feb:

"The Serious Fraud Office’s ability to compel evidence from overseas was dealt a blow in the Supreme Court on Friday in a ruling that underlines the limits of its powers to tackle the increasing cross-border nature of financial crime.Â

“This is a serious blow to the SFO. Without being able to use its [Section 2 powers] overseas, the agency finds itself in a peculiar position of having the power to prosecute overseas companies/individuals, but with limited powers to investigate them,� said Kyle Phillips, a criminal lawyer at Fieldfisher, adding: “When the [Criminal Justice] Act was created in the 80s the world was a smaller place.�;



I suspect the 'redirect' in Lufkin's case is related to this ruling.

I would also suggest any pending case, in relation to the SFO investigation of PFC is pretty much scuppered as any evidence gathered would have to involve overseas documentation... now deemed inadmissible!

I would not be surprised to hear from the SFO in relation to the PFC investigation long before June and the Lufkin case's redirection.

But of course, I'm no expert but that's how I'm reading things. As they say, WTFDIK!"

[petrich] 01/3/2021 17:26

And that is the big big question....

Why, when someone has pleased guilty and turned up to get his sentence would you go .....

Stop Complete change of plan...

"I will delay this case for 5 months and then review the case and consider whether there needs to be further information or action taken by the parties, Cafcass or anyone else".

I would suggest which is pretty obvious something very major has occured to cause this....

I would be suprised if its anything to do with new evidence or statements as surely they have had 4 years for that.I also would have thought that Lufkin would have done any kind of plea for info deal a long time ago....

So its either something completely new left field that we dont know about or is it to do with the recent ruling on forgeign evidence ?

Any thoughts ??

Oh to know which one ???

[sbb1x] 01/3/2021 17:20

Briton jailed over the plot to pay bribes for #Iraq oil contract. The jailing of Paul Bond on Monday is the fourth successful prosecution by the @UKSFO following the exposure of the systematic use of multimillion-dollar bribes #Unaoilhttps://t.co/BdKhuRpkuS

[cybernest53] 01/3/2021 16:49

Lufkin is not a 'case review'. The sentencing was adjourned on the 11th February to 6th June 2021 for a Judge's redirection. Big difference!