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Today and yesterday people are buying……
In spite of all this, Petrofac have been awarded a new 300 million dollar contract. They obviously don't read your posts..
So if you had not maxed out thr credit facility.you go to a bond Company ask for the requred APB and PG anf pay the arangement fee...
For some reason PFC can not get APB or PG bonds.... Why Credit History... Bonds History being called....
APB and PG are the tools of a contractors trade.......
Its Bad Very Bad
" it does not immediately mean that they have max'd out the facility limit, indeed they may only be in hock for a small proportion of the total credit limit. "
maxdba
you need to review the H1 Report (page 33) where you will see that the RCF has been fully drawn down at US$162m
Snapper10 - wouldn't it be the case that to get a revolving credit facility that they would have had to give some security, but that the security would have needed to be worth perhaps double the credit facility limit and that said security could not have a charge over it to somebody else ?
Also, as it is a credit facility, so not a loan, it does not immediately mean that they have max'd out the facility limit, indeed they may only be in hock for a small proportion of the total credit limit.
An RCF is quite expensive to run compared to an ordinary loan and are best used to fill a cash flow hole, rather than as a long term loan.
Just imagine this new contract RNS had been released after the price jumped to 32p the management new it was coming without rushing one out about D4E. By now I could have been out at
a profit.
Not sure but this was quite a few years ago they purchased their share of the field when Petrofac were doing good and had a share price of over £10/share.
And how much do you think this is worth?
And dont you think Banks will not have security over it.....
Solentskier - As of 17th Feb 24 PFC still has a finger in the pie. https://www.offshore-technology.com/data-insights/oil-gas-field-profile-cendor-west-desaru-conventional-oil-field-malaysia/?cf-view
As an ex Petrofac employee i think they still have assets in Malayasia to see off Cendor field maybe or has this been sold last year?
The 10% $750 million upfront payment TenneT that acts as the "Magic Pill".... And convinces Clueless Investors that the Cash Flow problem doesn't exist......
In realityTenneT could be the ultimate nail in the coffin for PFC.......
The TenneT Sub Contractors see the state of affairs that PFC are in and will only mobilise on Cash positive Contracts and Upfront Mobilisation Contracts.....Instead of Cash Coming in its going out with the same Tide..........
In the meantime PFC are trying to refinancing on a issued Auditors Report that highlights "Financial Mismanagement " who's kidding who.....
On top the Black Hole shouts even louder.....
PFC Don’t have any assets to sell only other Parts of the Business and any case they are so crooked the company’s are inseparable…You cant unpick one because they are banking at the same well…and Everything else is Pots and Pans…No Multi Story Properties worth Billions…..Its Leased…..
The BOD can spout Propaganda about New Contracts……..
But when you have Legacy Contracts Which are costing your company money then you are not addressing the fundamental’s…
PFC has a history of major losses on these contracts……….and lied about the same losses in the past.
If the Alarm Bells are not ringing now... Investors must be Deaf and Blind.......
Its all contained in the PFC Accounts......
" There is no chance in hell a company would gift such a contract if the company was believed to be going bankrupt. "
The reality is...if... the company went bankrupt ( not suggesting they will) , then Asset Solutions would end up in the hands of the creditors , and the business would more likely than not,carry on as usual....it is a business worth investing in
Right now...the lenders basically own the assets , as a result of the debts against the assets, and Asset Solutions is a business that is doing well and would carry on as such...but ..merely in the hands of the lenders ..... in that scenario .... until a point when the lenders decided to sell that business, if they wished
These are fair points, joe80, but none of that changes the fact that, as far as common shareholders go, bankruptcy is not the only thing that could potentially wipe them out (or almost as good as) from this current share price point.
None of which matters from the perspective of those who give out the contracts to PFC, necessarily.
As long as the business is a going concern, operating with the law, and the work gets done, so what? From their position.
As pokerchips rightly said earlier though, shareholders are basically at the bottom of the food chain here.
And until we get specifics on what the finance deal is going to involve, then it is something that everyone needs to base their decisions on.
As to your final opinion. That very much depends on what happens with said finance.
A D4E around 10p? Maybe. An II backed raise at 15p or more? That would start to look appealing for a potential trade again, IMO.
Or something much, much better for shareholders might be agreed upon, and those of you inside the tent right now can look forward to your rewards for the risks you have decided to take. GLA.
They cause absolute chaos within the forums.Knowone has any idea what is going on ,that proved last week.Petrofec has had several contact this year so far ,a company that's going bust ,its not happening.im also back in.
Cons
I've been in OnG nearly 20 years (unfortunately) so my post comes from experience. If clients are giving Petro 350mil contracts, it's for good reason. There is no chance in hell a company would gift such a contract if the company was believed to be going bankrupt. They've performed due diligence and have insight to data that we aren't privy too. Petro would of had to have proven that they'd be still be operating the duration of the contract
Anybody getting on under 20p will be laughing in a years time....maybe sooner
Ivorgriffiths - Not only that ! In general - buy and sell any asset/ company => profit/ loss statement, filling in tax return and bonus calculation. During the negotiation, the buyer/ investor would try to get PFC at the lowest price and they would welcome any help if it looks innocent/ legal.
Took this little rise to sell another tranche of my shares, still have 50k shares which is about 40% of original holdings. I’ll probably keep these now to have some skin in the game and depending on restructure outcome may get back in.
Just have no idea how it will end but feel they’ve give us plenty of time to exit before a possible D4E, however do want holdings should they do a rights issue. GALTH
It is a contract within Asset Solutions which is arguably the strongest part of the company ....and ... if the company itself were to get to severe financial situation ...the Asset Solutions business could relatively easily , and quickly, be sold as a separate business and continue as normal
so... a $70m a year contract (...that doesnt necessarily run 5 years if circumstances changed things ) .... within Asset Solutions isnt as such an issue as it would be if it was a E&C contract
This is probably the best post Ive seen in a long time...
'I mean a company is going to waste their time piecing together a deal together for the past however many months, to the tune of 100k + (corporate lawyers fee's etc), to gift 350mil to a company that's supposedly going bust. The oil game doesn't work like that fella
If petrofacs circumstances were that terrible, not a single OnG comp would waste their time with them and risk losing millions as a consequence. Especially when there's numerous other service companies whose services they could acquire'
Simple question so don’t batter me! Would it be conceivable that PFC are going balls out accumulating as many contracts in order to demonstrate to the banks that any equity taken for debt will not necessary mean a harsh dilution in SP if future work load carry’s significant profit? Therefore no change in SP price regarding a possible D4E. Off to the dentist so can’t reply straight away, more pain lol..
Tuan6
the CEO of any company DOES NOT spend his/her time looking at the trading of the share and decide when to release any RNS based around that.....
The CEO is running the business and has a huge amount of responsibilities around doing so....
They release an RNS when they think it is appropriate ...
" the CEO let shorters" ......
the CEO has not the time to dance around the trading activities of shorters, bulls, bears or anyone else .... he
Extract the same I think about this company and its contacts worth many years to come. How can they let this administration and lay off thousands jobs? This is why sometimes need time to recover and this is what company doing.
I dont believe in CEO at all as he let shorters bring donw but nothing rns about this but when share on up trend he pull out bad RNS to bring down share price. CEO in group crock to teat apart this public company and carefully keep an eye on him .
Good point Joe
Cuban_cigar
I thought you were talking about share dealing rather than tax returns and CGT.
Hugeprofitby2030
I agree with that. I bought in before the 20th December and was tempted to sell but bought in on the basis it was a three year turnaround with an upside of four or five times investment allowing for restructuring and so on. Recently I have begun to think a takeover is possible, not probable but possible. It is interesting to watch developments as you say but I am off on my jollies so I am going to ignore everything except RNS updates and clock off.
GLA DYOR