Petrofac Limited (PFC)

[ReallyVeryFoolish]

A nice blue day today at PFC whilst many firms are shares in the Brexit doldrums. Hope to see PFC stock closing in on 200p soon. Still well under water here but it's still a quality company. If only SFO would come clean on them having no case now against PFC.

RVF

[PinkDalek]

Petrofac issues the following pre-close trading update for the year ending 31 December 2020

https://www.investegate.co.uk/petrofac-limited--pfc-/eqs/trading-update/20201216070012EQTSR/

[ReallyVeryFoolish]

Mr Market is unimpressed this morning. Desperately need a decision from SFO here. Good or bad news would be desirable. But I doubt they have a winnable case.

RVF

[feinmann]

"Former senior Petrofac Ltd executive David Lufkin pleaded guilty at Westminster Magistrates’ Court on Thursday to three further bribery offences in relation to oil deals in United Arab Emirates (UAE), Britain’s Serious Fraud Office (SFO) said in a statement. These charges are in addition to 11 charges of bribery already brought by the SFO, to which Lufkin pleaded guilty in February 2019. The case has been committed for sentence to Southwark Crown Court on 11 February 2021, SFO added."

https://www.reuters.com/article/uk-brit ... SKBN29J2M6

[ReallyVeryFoolish]

"Former senior Petrofac Ltd executive David Lufkin pleaded guilty at Westminster Magistrates’ Court on Thursday to three further bribery offences in relation to oil deals in United Arab Emirates (UAE), Britain’s Serious Fraud Office (SFO) said in a statement. These charges are in addition to 11 charges of bribery already brought by the SFO, to which Lufkin pleaded guilty in February 2019. The case has been committed for sentence to Southwark Crown Court on 11 February 2021, SFO added."

https://www.reuters.com/article/uk-brit ... SKBN29J2M6

Oh dear. PFC stock pretty much hammered as a result.

RVF

[monabri]

"Former senior Petrofac Ltd executive David Lufkin pleaded guilty at Westminster Magistrates’ Court on Thursday to three further bribery offences in relation to oil deals in United Arab Emirates (UAE), Britain’s Serious Fraud Office (SFO) said in a statement. These charges are in addition to 11 charges of bribery already brought by the SFO, to which Lufkin pleaded guilty in February 2019. The case has been committed for sentence to Southwark Crown Court on 11 February 2021, SFO added."

https://www.reuters.com/article/uk-brit ... SKBN29J2M6

Oh dear. PFC stock pretty much hammered as a result.

RVF

Oh dear. PFC stock pretty much hammered AGAIN as a result.

[Bouleversee]

The Board's statement doesn't seem to have stemmed the downhill flow of shareholders' money. Last time this happened I bought more but fat lot of good that did me so I won't repeat. No idea how this is going to pan out.

[monabri]

They should have employed the same legal defence team that BATS did!

[ReallyVeryFoolish]

Such a shame when the company's only crime is being caught. What's the betting that who ever first blew the whistle was a disgruntled official who felt hard done by because either he was excluded or felt his "commission" was less than he deserved?

However, it seems to me that apart from ex-employees, there is still no action against Petrofac itself, just against individual ex-employess?

It's doubly frustrating because this company is actually pretty good at what it does.

RVF

[Clitheroekid]

I would think that they must be quite an attractive takeover target at this price. A new owner could get what's basically a very good company at a bargain basement price, and as they wouldn't be tainted with the sins of the current / recent management they should be able to revive PFC's fortunes quite quickly, particularly on the back of a strengthened oil price.

I must say I'm tempted, though the image of a falling knife is very much present.

[ReallyVeryFoolish]

I would think that they must be quite an attractive takeover target at this price. A new owner could get what's basically a very good company at a bargain basement price, and as they wouldn't be tainted with the sins of the current / recent management they should be able to revive PFC's fortunes quite quickly, particularly on the back of a strengthened oil price.

I must say I'm tempted, though the image of a falling knife is very much present.

I quite agree, but I started thinking of a hostile bid at about 300p. It will be more probable when Asfari steps down. I am not certain how much his family own these days though.

RVF

[monabri]

19.39% owned by Asfari.

19.39% Ayman Asfari
7.53% Schroder Investment Management Limited
6.72% Toscafund Asset Management LLP
3.96% Caisse de dépôt et placement du Québec %
3.73% J O Hambro Capital Management Limited 1%
3.01% Ntms Investments Limited

[Bouleversee]

19.39% owned by Asfari.

19.39% Ayman Asfari
7.53% Schroder Investment Management Limited
6.72% Toscafund Asset Management LLP
3.96% Caisse de dépôt et placement du Québec %
3.73% J O Hambro Capital Management Limited 1%
3.01% Ntms Investments Limited

And you, RVF and I own most of the rest, don't we, Mon? OK, it just feels like that.

[monabri]

19.39% owned by Asfari.

19.39% Ayman Asfari
7.53% Schroder Investment Management Limited
6.72% Toscafund Asset Management LLP
3.96% Caisse de dépôt et placement du Québec %
3.73% J O Hambro Capital Management Limited 1%
3.01% Ntms Investments Limited

And you, RVF and I own most of the rest, don't we, Mon? OK, it just feels like that.

The precentage doesn't change...it just feels like it does !!

[ReallyVeryFoolish]

I am afraid I am guilty here of believing quality would win out in the end. I don't think I am wrong about the quality of the company, I know it well. There's little doubt that almost four years into an SFO investigation, it has turned out far more damaging than I had thought it would be.

RVF.

[Clitheroekid]

An interesting view, and one I tend to concur with - https://www.ii.co.uk/analysis-commentar ... 60121%20(1)&utm_content=newsletter&spMailingID=11962798&spUserID=MTQyNzM1ODUxOTY5S0&spJobID=1675490449&spReportId=MTY3NTQ5MDQ0OQS2

I've been in and out of PFC for several years, and it's been very good to me overall. I think that the upside now outweighs the downside, so time for another dabble.

[ReallyVeryFoolish]

An interesting view, and one I tend to concur with - https://www.ii.co.uk/analysis-commentar ... 60121%20(1)&utm_content=newsletter&spMailingID=11962798&spUserID=MTQyNzM1ODUxOTY5S0&spJobID=1675490449&spReportId=MTY3NTQ5MDQ0OQS2

I've been in and out of PFC for several years, and it's been very good to me overall. I think that the upside now outweighs the downside, so time for another dabble.

Thanks, the first positive piece I have seen about PFC for a very long time. I hung on way too long thinking it was just too cheap. But it kept getting cheaper. I am massively underwater here. There have been positive noises from the big service companies in the US too recently. I hope 2021 sees something of a turn round for Petrofac. They are still a sound company. A long haul from here, but I am hopeful.

RVF

[ReallyVeryFoolish]

Small beer really, but every little helps. As they say -

https://www.rigzone.com/news/petrofac_n ... 8-article/

RVF

[Clitheroekid]

Bearing in mind that poor old PFC is one of the most heavily shorted stocks in the UK I wonder if there's any hope of interesting our friends on Reddit ...!

[Bouleversee]

I've just received the following in an email from Petrofac via its financial PR people:

COVID CORPORATE FINANCING FACILITY

Petrofac has today issued £300 million in commercial paper with a maturity of 12 months under the Covid Corporate Financing Facility, the maximum amount it is eligible to issue under this facility.

I wonder what the s.p. will do tomorrow.