Petrofac Limited (PFC)

[monabri]

Based on further sp collapse this looks to be in dire straits!

£15 a share down to <30 pence.

Source:
https://www.google.com/search?q=pfc+sha ... s-wiz-serp

[BullDog]

Based on further sp collapse this looks to be in dire straits!

£15 a share down to <30 pence.

Source:
https://www.google.com/search?q=pfc+sha ... s-wiz-serp

[Bouleversee]

Not another one, as whatshername said.

Didn't read the Google article because I would have had to sign in etc. to prove I was over 18. No doubt there will be same info somewhere else.

[monabri]

Not another one, as whatshername said.

Didn't read the Google article because I would have had to sign in etc. to prove I was over 18. No doubt there will be same info somewhere else.

The Google link was merely a link to the source for the graph of shareprice.

[csearle]

Moderator Message:
Discussion continues here . - Chris

[daveh]

Board change and update:
https://www.investegate.co.uk/announcem ... n-/7918900

Strategic and financial options to strengthen balance sheet

The Board is examining a range of strategic and financial options with the objective of materially strengthening the Company’s balance sheet, securing bank guarantees and improving short-term liquidity. A key aim of this review is to protect the interests of Petrofac’s shareholders, creditors and employees while the Group continues its focus on safe and effective delivery for its clients.

Management has been making progress in organic actions to unwind working capital, collect receipts on ongoing and new contracts and to unlock long-outstanding commercial settlements. In addition, Management is considering the sale of non-core assets, and is actively engaged in discussions with financial investors to take a non-controlling position in certain other components of the business portfolio. As part of an overall plan, these transactions would result in a material improvement on the balance sheet. The Company is also exploring potential new financial options across all its classes of capital.

Business update

Operationally, as demonstrated by its backlog growth, the Group continues to deliver well for its clients, and has a healthy Group pipeline scheduled for award in the period to the end of 2024.

The full year free cash flow guidance1 provided with our interim results was based, in part, on unwinding historical working capital and collecting advance payments on the new contracts secured in 2023. While the Group has made progress in reaching contractual settlements and unwinding working capital, given delays in securing advance payment guarantees, it no longer expects to receive these advances before the year-end. Consequently, it no longer expects to meet the guidance previously provided for full year cash flow.

The Group has continued to maintain liquidity above its financial covenant2 and will provide further details in its trading update on 20 December 2023.

No longer a holder fortunately share price down again to just 15p

[daveh]

Trading update:
https://www.investegate.co.uk/announcem ... e-/7952813

PETROFAC LIMITED
TRADING UPDATE

Petrofac issues the following pre-close trading update for the year ending 31 December 2023.

FINANCIAL AND STRATEGIC UPDATE:

Second contract award under the six-project, US$14 billion, multi-year Framework Agreement with TenneT announced today. Petrofac’s portion of the second contract valued at approximately US$1.4 billion.
Performance guarantee secured for the first contract awarded under the Framework Agreement with TenneT. Performance guarantee terms agreed for the first ADNOC Habshan contract – expected to be issued by year end. Active discussions ongoing to secure guarantees required for other new contracts.
Net debt(1) expected to be modestly higher than at the interim results, with positive free cash flow generation by the business in the second half offset by an increase in collateral required for guarantees.
Near-term focus remains on strengthening the balance sheet with ongoing review of strategic and financial options.

OPERATIONAL PERFORMANCE:

Asset Solutions and IES underlying performance in line with guidance, before a one-off bad debt provision in Asset Solutions of approximately US$12 million.
Expect a full year EBIT loss in E&C of approximately US$215 million, including US$110 million one-off write downs in contract settlements to protect cash flows.
Good progress in reaching contractual settlements in the second half, with approximately US$180 million collected year-to-date.
Completion of remaining legacy E&C contracts progressing in line with guidance.
Thai Oil Clean Fuels project progress remains on track, with negotiations ongoing to recover additional committed costs.
BACKLOG AND OUTLOOK:

Exceptional new order intake(2) across both E&C and Asset Solutions, totalling approximately US$6.8 billion in the year-to-date, with Group backlog(3) expected to be approximately US$8.0 billion at the end of the year.
Robust business outlook underpinned by strong backlog and a healthy Group pipeline scheduled for award in the next 18 months of US$62 billion, including the remaining projects in the TenneT multi-platform Framework Agreement.

Contract with Hitachi:
https://www.investegate.co.uk/announcem ... y-/7952882

PETROFAC AND HITACHI ENERGY ANNOUNCE

SECOND PROJECT IN SUPPORT OF TENNET’S 2GW PROGRAMME

Second contract award under the six-project, US$14 billion, multi-year Framework Agreement with TenneT
Petrofac’s portion of the second contract valued at around US$1.4 billion
Award coincides with confirmation that Petrofac has secured the performance guarantee required for the first contract awarded by TenneT in March 2023
Second contract contains similar industry standard requirement for Petrofac to provide a performance guarantee
Additional contracts within TenneT’s 2GW Framework Agreement expected at approximately six-month intervals
Petrofac, a leading provider of services to the global energy industry, and Hitachi Energy, a global technology leader that is advancing a sustainable future for all, announce today the award of the second project under the US$14 billion, multi-year Framework Agreement with TenneT – the Dutch-German Transmission System Operator – to expand offshore wind capacity in the North Sea.

The project is to be executed under a standalone contract, with Petrofac’s portion valued at around US$1.4 billion.

No longer a shareholder, but no one else seems to be reporting on Petrofac here.

[daveh]

Update on strategy review:
https://www.investegate.co.uk/announcem ... g-/8070346

Petrofac today provides an update with respect to its review of strategic and financial options, further to its announcements on 4 December 2023 and 20 December 2023. This review, which is ongoing, has the objective of materially strengthening the Company’s balance sheet, improving short-term liquidity and securing bank guarantees.

Active discussions are progressing with Petrofac’s stakeholders including its lending group, comprising both bondholders and lending banks, and other capital providers. Furthermore, as announced on 4 December, Petrofac is making progress in exploring the sale of non-core assets.

Taken together, these actions are being undertaken with the aim of managing the Group’s payment obligations, supporting the provision of guarantees and ensuring that Petrofac has the appropriate capital structure and liquidity to support the strength of its backlog and future business prospects.

Share price this morning up a little at 24p

Fortunately I sold at 64p a while ago, but still held on too long.

[Bouleversee]

Still stuck with mine. No idea whether it will recover. Today's announcement doesn't tell us much.

[daveh]

Update on strategic review and financial options:
https://www.investegate.co.uk/announcem ... n-/8134339

Talking to lenders about restructuring debt via a debt for equity swap - so that is likely to shaft present shareholders
and in discussion with certain prospective investors and major shareholders about putting in more money and in discussion about sale of non core assets.

Down 26% today to 24.6p when I looked.

Fortunately no longer a shareholder

[daveh]

supporting the national oil company of Equatorial Guinea:
https://www.investegate.co.uk/announcem ... t-/8143762

They have been awarded a Technical Services Contract by the National Oil Company of Equatorial Guinea, to support the operation of the region’s Block B asset.

The contract is valued at around US$350 million over five years.

Petrofac will deliver technical services across onshore support bases, an FPSO and a platform on behalf of the Operator.

[Clitheroekid]

Petrofac will deliver technical services across onshore support bases, an FPSO and a platform on behalf of the Operator.

Assuming they're still there to do so ...