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The issue with the SFO is centered around Unaoil and clearly there were people involved in fraud, corruption and money laundering ...over a number of years...so you can hardly not expect US, UK, Australian, Canadian etc etc law enforcement not to get involved in the story.
Individuals have indeed been corrupt ...but...it all seems pretty obvious that the companies themselves were placed in a position that they more or less had to pay bribes to corrupt Government Officials..
If there werent corrupt Government Officals in places like Iraq then you wouldnt have had the bribes in the first place....
by the way..are they accountable to anyone..as they can drag this on for ever...earning salaries
I’m not asking whether or not they care, that is blatantly obvious. What I’m asking is can and more importantly will petrofac file for damages in the event of SFO closure as the cloud has hampered its ability to do business.
SFO what do they care if they damage British business
meanwhile earning nice salaries
I feel PFC at some point in time will bounce back. SFO investigations will come to an end and should the back log improve in the meantime , we should see some of the good old days
I sold my holding yesterday and decided to wait and see the update.Last week's drop to 379p made me feel somewhat skeptical that the update was going to be robust with regards to the Group Backlog figure and market conditions.
The company itself are doing OK and they are looking more towards places like India and Asia so as not to depend too much on the Middle East.The move into the Permium with W&W Energy Services was an interesting move.
They have to pay US$22 million cash for W&W Energy Services and there wasnt anything about when that completion is due
" We have seen delays in E&C bidding processes in the second half of the year"
"we are well-placed on several opportunities"
...no spurises there ..that seems to be happening across the sector
" US$39 billion of bid opportunities scheduled for award by the end of 2020 in both core and growth markets." ....
When the SFO case is resolved , will PFC be allowed to bid and conclude contracts in Saudi and Iraq ?
Agreed. The big fly in the ointment is the falling backlog and as we all know this will not be resolved until the Civil Servants stop sodding around attempting to justify their increasingly fragile future.
Probably why the SP has been hammered this morning.
Order book reducing - hence the fall
Wow I read nothing in report to bring price down. Another great buying opportunity
I wish the blooming SFO would close the case...its dragging on like Brexit. The new order intake is the issue and the SFO are right royally hampering PFC's ability to win orders.
PETROFAC LIMITED
TRADING UPDATE
Petrofac issues the following pre-close trading update ahead of the announcement of its full year results for the year ending 31 December 2019 on 25 February 2020.
· Trading in line with guidance
· New order intake (1) of US$3.0 billion in the year to date
· Net debt (2) expected to be around US$0.1 billion at 31 December 2019
Ayman Asfari, Petrofac's Group Chief Executive, commented:
"We remain on course to report good results for 2019 in line with prior guidance, which reflect solid operational performance across the business and continued progress delivering our strategy.
"We are encouraged by the improving market outlook and our busy tendering pipeline, with US$39 billion of bid opportunities scheduled for award by the end of 2020 in both core and growth markets. We have seen delays in E&C bidding processes in the second half of the year, which has further impacted new order intake following the previously announced loss of awards in Saudi Arabia and Iraq in the first half. However, we are well-placed on several opportunities.
"We remain committed to our strategy of best-in-class delivery, enhancing returns and positioning the business for a return to growth. This year we have made further good progress improving cost competitiveness and divesting non-core assets, whilst maintaining a strong balance sheet. Looking forward, the fundamentals of our business remain robust, with an improving market outlook, a strong competitive position and excellent customer relationships. We are therefore investing in maintaining our bench strength and technical capability to position Petrofac for a recovery in new orders in 2020 and future growth."
Engineering & Construction (E&C)
We are making steady progress delivering our portfolio of E&C projects, with revenue and net margin for 2019 in line with previous guidance. The BorWin 3 offshore grid connection project in the North Sea, the RAPID project in Malaysia, the Upper Zakum Field Development in the UAE, the Jazan North tank farm and Fadhili projects in Saudi Arabia, and the KNPC Clean Fuels project in Kuwait are all substantially complete. A major milestone was also recently achieved on the Lower Fars Heavy Oil plant in Kuwait with the commencement of steam injection. The Khazzan Phase 2 (Ghazeer) gas development in Oman remains ahead of schedule.
Our EPCm projects are also progressing well. The Al Taweelah Alumina Refinery in the UAE has started up, the Rabab Harweel Integrated Project in Oman has commenced production and gas has recently been introduced into TurkStream in Turkey.
New order intake of US$2.0 billion in the year to date (2018: US$4.3 billion(3)) includes: a lump-sum engineering, procurement and construction (EPC) contract for the Ain Tsila Development Project in Algeria; the Mabrouk Project in Oman; and, the second of two platforms for the HKZ offshore wind project
Looks like the whole Civil Service in in for radical changes, the SFO being just one of the agencies on the list.
Likely that the huge tide of domestic and retail fraud will now be its emphasis. This was a big issue on the doorsteps during the election!
One lives in hope but I suspect BoJo has more important fish to fry at the moment-I need not elaborate I'm sure
There will be little sympathy for the SFO in this new parliament for, it is seen as part of the "The Blair Project" that has politicised the UK establishment with its silent contagion; most especially the first division of the Civil Service the Law !
Historically this is a low for PFC. The SFO investigation has been ongoing for years. During that time it has been back up above 500p and then down again. Now is not the time to sell.
"Sell at the bottom? Not a good strategy."
Indeed not...but with this share price going nowhere for 4 months, and back to where it was in February, Stockdale....yesterday, I had just about decided to throw in the towel and go elsewhere ,as it hit 379p ....it quickly hit 381p and then stabilised again.......I still may not hold until the trading update...will take it day by day
Mark
Hi..enjoy the holiday....hope you will get some some sun....
Thanks for the figures
Sorry rushing!
net profit 2018 $64m TTM $220m estimate
operating margin 2.7% TTM 6.74% estimate
FCF $726m TTM $993m estimate etc
I missed that PC and Im away on holiday then!
All the analysts estimates I can see for the lat 12 forecasts are good..
TTM net profit 2018 $64m TTM $220m estimate
TTM operating margin 2.7% $64m TTM 6.74% estimate
TTM FCF $726m TTM $993m estimate
Sell at the bottom? Not a good strategy.
With this hitting 379p yesterday I very nearly threw in the towel ....oil prices really need to hold at WTI $60 and Brent $65 as a baseline
Anyone got any views on next weeks trading update ?
I reckon the US are running the decision making regarding Unaoil and anyone involved with it all...the SFO are working in conjunction with them and others
I personally dont think there is much chance of the SFO folding on this, if there is something to follow through on...
wonder if the sfo will drop a number of investigations on the day of the election to keep it under the radar, more and more investigations and not much progress- the new government is bound to ask if they can spend the money better on the nhs?!!