Petrofac Trading Update

[idpickering]

Petrofac issues the following pre-close trading update ahead of the announcement of its full year results for year ending 31 December 2018 on 28 February 2019.

· Trading in line with expectations

· New order intake (1) of US$5.0 billion in the year to date

· Net debt is expected to be around US$250 million at 31 December 2018

Ayman Asfari, Petrofac's Group Chief Executive, commented:

"We are on course to report good results, which reflect solid operational performance in all our businesses and excellent progress delivering our strategy.

"Healthy new order intake in both our core and growth markets reflects our competitiveness in a market that has seen some delays in contract awards. We have also made excellent progress transitioning back to a capital light business with US$0.8 billion (2) of divestments of non-core assets, realising US$0.5 billion of net divestment proceeds to date.

"Looking forward, we remain focused on securing new orders, delivering operational excellence and maintaining a strong balance sheet. We are well-positioned with a differentiated offering, good backlog and revenue visibility, and high levels of tendering for award in 2019."

https://www.investegate.co.uk/petrofac- ... 00067517K/

[monabri]

That's a significant reduction in debt from close on $1 billion.

[Walrus]

That's a significant reduction in debt from close on $1 billion.

Yeah I agree. Looks a reasonable statement to me. Sold out of these at 620 earlier in the year, but these are looking pretty decent value again. I'm not sure they are the ideal HP share, but I do like the hands on management and owner certainly has skin in the game.

[idpickering]

FTSE 250 stock Petrofac yields almost 7% but is it worth the risk?

Thanks to the erratic oil price, shares in FTSE 250-listed service provider Petrofac (LSE: PFC) have lost 33% of their value in less than three months.

Does a more attractive valuation, not to mention sizeable dividend, make this a company worth investing in? Based on the reaction to today’s pre-close update for the full year, at least some market participants think so.

https://www.fool.co.uk/investing/2018/1 ... -the-risk/