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Trump is obviously getting some pressure from Texas to try and intervene on oil before some of the shaler go bankrupt.
He clearly was "suggesting" what Russia and the Saudi's should do, but it seems that they havent even met yet .
The Saudi's are getting very nervous. The Russians feel they are the ones that hold the key and final decision and are looking for something in terms of a bargaining position,before they "help" anyone out.
You have to think that the Russians want the US in on part of the cut production quatas and that the US/Russia/Saudi Arabia all become part of the production level cuts from now on..... given that the US have clearly gained a lot of market share off the backs of the Russians and the Saudi's
Yeah, but there's no competition from the Democrats.
i see trump was up to he's market manipulation tricks on oil again with he's twitter he must be panicking for re election. stats show no president has been re elected when there's been a market crash on there watch.
it was meant as a broad picture of what could be yet to come not specific to bp in fact it's not specific to any one company. i just see more down side for the entire market the thing is we are in q1 earnings the impact of covid did not really show up from a financial point of view q2 will be a different story.
Alto, speculative development might be put on ice but BAU maint, new extraction and upgrading facilities will go ahead. Pfc cutting capacity by 20% , others will also and maybe by more (if big debt levels) so margins should hold up. Heres the thing the lower the oil price the more efficient the big boys need to be, they need to invest to do that in projects to deliver and many if big engineering projects are multi year
What is the breakdown of BP cutback and how much is exploration/speculative related?
yes tony they do have to pay the divi but that's only a problem for them if the divi payment rises back up.
wolf the oil price will sure help but can you see any company's putting money into new projects i can't. the backlog will shrink. bp just withdrew 4billion worth of investment and more will follow i could be wrong but i just can't see easy ride from here.
I'm pretty sure shorters don't get the dividend and are actually responsible for paying the lender the dividend no?
never did get why investors think shorts will close out before a dividend i will never forget direct line years ago paid a divi of about 10p and went down 80p after a short attack that caught a few of guard.
Need to assess it in context of current market
If opec+ can agree a price stabilisation pact then the forward sp expectation is positive for recovery so the exdiv sp may not dip or dip by as much as sp,
Shorters must be looking at and wondering ok at 199p how much mire downside is likely to be priced in, on flip side i will have to fund a divi call (16%) and big driver of sp was collapse in olu price and that might be about to disappear and price can spike up.....
"Dividend payment will hurt shorters "
not really, as the SP drops on the ex-div day... and be careful..because at times they then drive the SP down after ex-div day in order to get an even lower SP beyond what they have to pay the share owner for the dividend
Ex-div can in fact be a dangerous period if there are alot of shorters and the market sentiment isnt good..
Saudi Arabia called on Thursday for an emergency meeting of OPEC, Russia and other oil producers to stabilise the oil market, which has been in turmoil since a deal on supply curbs collapsed and Riyadh began pumping extra crude into an oversupplied market.
https://www.reuters.com/article/us-global-oil-saudi-russia/saudi-arabia-calls-for-emergency-oil-meeting-sending-weak-crude-prices-higher-idUSKBN21K0EA?il=0
Oil price surged by 30% on hope of detente...FT
Dividend payment will hurt shorters and with market reacting to oil price rise, lets see if they cut and run, further spurt on sp
Stay positive and if ya have cash, could well be a very good time to strike
Petrofac Limited (the "Company")
Notification of Transaction by
Persons Discharging Managerial Responsibilities (PDMRs)
Pursuant to the Company's obligations under Market Abuse Regulation 19, the Company hereby confirms that today, the following Directors purchased ordinary shares ("Shares") of US$0.02 each in the Company at 199.6 pence per Share on the London Stock Exchange. These purchases are in line with the Company's remuneration arrangements, as published in the 2019 Annual Report and Accounts:
Name of Director
Position
Number of Shares purchased on 2 April 2020
Total cumulative disclosable interest held (Shares)
René Médori
Non-executive Chairman
10,020
38,649
Andrea Abt
Non-executive Director
2,505
10,724
Sara Akbar
Non-executive Director
2,505
10,724
Matthias Bichsel
Non-executive Director
2,505
10,724
David Davies
Non-executive Director
2,505
24,956
George Pierson
Non-executive Director
2,505
89,174
Francesca di Carlo
Non-executive Director
2,505
5,786
The Company's issued share capital consists of 345,912,747 Shares with voting rights. Each Share carries the right to one vote. The Company does not hold any shares in Treasury.
President Donald Trump expects Russian President Vladmir Putin and Crown Prince of Saudi Arabia Mohammed Bin Salman to announce a deal on a production cut, the president said to CNBC.
The president is expecting a cut of 10 million barrels, although the cut could be as high as 15 million barrels.
https://www.cnbc.com/2020/04/02/trump-tells-cnbc-he-spoke-to-putin-mbs-and-expects-saudis-russia-to-announce-10-million-barrel-cut.html
looks to me that this email was put out on purpose to let people down gently. you are right they would be peed if made redundant but payed a 15% divi so it looks like the righting is on the wall?
Alto1
Thanks for the Reuters update...
Not sure what the redundancy costs would be....but...they cant surely be making people redundant and then paying a dividend.
“We must act immediately and decisively to protect the future of our business,” doesnt sit alongside any dividend payment
Looks like an update RNS is imminent regarding current trading, and COVID-19 and the actions being taken
https://www.reuters.com/article/petrofac-jobs/petrofac-seeks-redundancies-considers-salary-cuts-email-idUSL8N2BQ498
DUBAI, April 2 (Reuters) – Oilfield services provider Petrofac is launching a redundancy programme that it expects will end up reducing staff numbers by 20% as it seeks to cope with plunging oil prices, according to a source and an internal email seen by Reuters.
The Britain-based company, which said redundancies would be voluntary but could become compulsory if not enough people took up the offer, said it might also consider reducing base salaries by at least 10% for many employees.
"The oil price slump can be expected to have a considerable impact on demand for our services in the short and medium term," Petrofac Group Chief Executive Ayman Asfari wrote in the email sent to staff on Thursday.
"We must act immediately and decisively to protect the future of our business," he wrote.
A source confirmed the content.
Petrofac, which designs, builds and operates oil and gas facilities, offered no immediate comment but said it would respond later on Thursday.
Brent crude lost about two-thirds of its value in the first quarter as demand plummeted due to measures to halt the spread of coronavirus and as Saudi Arabia and Russia battled for market share, pumping extra oil into an oversupplied market.
Other energy industry companies have been announcing a range of measures to deal with downturn, including major cost cuts.
The chief executive said the voluntary redundancy programme would be offered to employees for two weeks but said the company could consider compulsory layoffs after that period.
The company also planned a 50% reduction in its planned capital expenditure, Asfari wrote.
Petrofac "is likely to have to consider a reduction in the base salaries and allowances of at least 10% for many employees," the chief executive wrote.
The company was also exploring options to use government support to pay employees in countries where a programme had been put in place, he added.
Not sure it's a good idea to view these things from a personal preference. I would assume the BoD will know the best course of action. However that will be from the view of the company. We need to make sure our view aligns with the company's.
i beg to differ wg is up 12% and most of that is due to there update true they have different setups but same industry what's the point of paying a dividend and the share price drops more than the divi due to the fact that key investors find it irresponsible to pay it. wait until the cracks start to really show in the economy then you will see how important it is for company's to have a good cash buffer.
The debt position of the two company's is very different Alto. I think that PFC should certainly look at some of sensible measures that WG have taken but PFC can and should pay a dividend. At this point in time I don’t think that there is any need to change the decision to pay a dividend as circumstances could change markedly for the better or worse over the next 7/8 weeks.
this it what i would expect from us! Wood Group (John)plc - Covid-19 Update, Final Dividend And Agm
Wood Plc - Actions Taken In Response To Covid-19, Withdrawal Of Final Dividend Recommendation And Postponement Of Agm
Wood Plc - Entered 2020 With A Strong Balance Sheet Foundation With C$1.4bn Of Headroom Against Our Debt Facilities
Wood Plc - Board, Executive Directors And Senior Leaders Have Elected To Take A Voluntary, Temporary 10% Reduction In Base Salary
Wood Plc - Additional Group Of Employees Is Also Being Asked To Take A Reduction In Base Salary
Wood Plc - Anticipate That Salary Reductions Will Generate Overhead Savings In 2020 Of C$40m
Wood Plc - Employee Reductions Are Also Being Made In Certain Areas Reflecting Reduction In Operational Activity
Wood Plc - Taken Decision To Pause Implementation Of Erp System, Other Discretionary Capex Expected To Generate A C$20 - 25m Reduction In 2020 Capex
Wood Plc - Considers It Prudent And Appropriate To Withdraw Final Dividend Recommendation
we have USA jobless claims at at 13.30 so i have took this rise in pfc to sell some of i just can't see these numbers being pretty that being said the dow went up last time bizarre. lets hope pfc stays positive to oil rise today.
The whole World's economy is dropping. Some will be less effected but in general we're all in this together. So we'll all start again from a lower base.
The perverse part is the oil price. Producing at the rate they are under Covid 19 is perverse.