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Simply... Wow... !!!
Petrofac won't release an RNS regarding the BP contract extension which coincidentally happened while they wanted the share price down... Guess that want it up again!!!
All part of their price manipulation to suit shorters/mm/aa/take over
It's a brand new contract is why. Extensions are to a degree, to be expected and not news worthy. New contracts however are a completely different kettle of fish
The make the point of including this "For the latest update on Petrofac’s review of strategic and financial options, please refer to the Group’s announcement dated 12 April 2024."
They could just as well have written, this contract changes nothing Debt 4 Equity swap will be announced soon.
I am sorry, but that is simply not true. A company can, and often does, announce contract renewals.
When a company is under financial difficulty, I would suggest it is actually beholden on the senior management team to do everything that it can to show the market what it has and continues to have etc. Not just new work wins.
You are probably going to enjoy a rise in the SP today and good luck to you.
This actually increases the mistrust I now have in the management here, how they presented the last RNS etc, so am not tempted to jump back in, even for a quick punt.
This lot feel like they might rug pull at any given second IMO and a sudden and ruinous D4E deal announcement intra-day would annoy me more than missed profits here might do.
As a scenario only, not suggesting such a thing will happen etc. GLA.
Company has a great future, just timing for the SP. Chill 😎 everyone. Patience will out.
Last paragraph of the RNS needs some thought.
For the latest update on Petrofac’s review of strategic and financial options, please refer to the Group’s announcement dated 12 April 2024.
Nothing has changed until they actually announce the D4E deal.
Here, were exactly did i state that companies don't announce renewals??? I CLEARLY made the point that there is a BIG difference between a contract renewal/extension and a NEW contract awarded by a NEW client. Especially one worth hundreds of millions
Due diligence has been performed and the new client has enough confidence in Petros future to invest 300mil into them. That speaks volumes to me
D4E is a red herring. They use it to manipulate the share price. Knowing a share will go up or down 10 or 25% is incredibly valuable. The careful wording and the hedge fund short position timely adjustments scream “insider trading” but nothing anyone can or will do to stop it. The value, provenance and nature of the “non core assets” is what intrigues me. The BOD have a duty to shareholders and in reality they will have to sell stuff before they can rip off the shareholders and bond holders. If your loss is less than £10k and a D4E happens without asset stripping you have a small claim and now risk of a costs order if you lose. If you believe you have a good case - for example the defence to a small claim is crap - it would even be worth risking kicking it up to the fast track so as to force them in disclosure as regards assets and efforts made to sell them. They need to watch themselves as they can be made personally liable, which they know. I think they are trying to shift the PI shares into another vehicle or parties’ hands that are institutional to avoid such risks prior to some form of merger, takeover or a major investment by a hedge fund. In the later case they will want a massive say and board room presence. D4E is risky before asset stripping and probably unlawful. PFCVeteran made a bad move imho. No D4E in my view but DYOR.
D4E is not a done deal....it is only an option as are the other scenarios
"The BOD have a duty to shareholders"
You need to understand that the BOD has a duty to STAKEHOLDERS , of which the shareholders are but one ...
and..the shareholders are currently at the bottom of the list in terms of having any stake in the business right now....
the NAV is next to nothing ... all the lenders have priority in terms of receiving anything from asset sales or in terms of resolving the issues regarding repayment of debt or payment of interest/coupon..
Any D4E is a form of debt default which Fitch referred to and as such downgraded the risk as such , as appropriate in such circumstances ...any future lenders being aware of the company debt history if such a debt default were to occur
There is some notion here that shareholders ( esp PI) should somehow be spoon fed above that of bondholders, bank lenders, business creditors, employees or anyone else
All this talk of " wanting the share price down" is utter nonsense ...... any D4E share price base will be given to the BOD ..it will not be for the BOD to go around expecting some price or other ...
We have no idea what the NAV is or what the priority is The Fitch downgrade is premises on the idea D4E is a done deal.
Petrofac have to asset strip to pay off debt as well as shave the bondholders and the BOD have to be very careful in the glaringly obvious game they are playing, especially given the criminal back story - which is why they are where they are of course. A mix of solutions is likely and in the medium term will significantly increase the value of the business, but only if the business they are getting is more than chasing turnover. D4E is not enough on its own. But receivership means no one gets paid.
" We have no idea what the NAV is "
well if so, then you haven't been following the data given....
Pokerchips - Suppressing the share price so that PFC can be bought/ taken over on the cheap ?
Sorry, I meant you have no idea what the NAV is. The share price is obviously being manipulated.
"Suppressing the share price so that PFC can be bought/ taken over on the cheap ? "
dont be ridiculous
You dont value a company based on some traders moving a share price up and down ...
there is some fantasy thinking going on here ....
“dont be ridiculous”
Look in the mirror mate. I guess if you want to be rude you’re good at that but it’s not our fault you’re skint so don’t take it out on everyone else.
Have you ever come across the announcements along the lines of - the offer / discount price is x times, x % of the share price on dd.mm.yy"
They refer to rights issues or share offerings that are available at a discount to existing shareholders.
Ivorgriffiths A baseline / reference share price is needed for profit/ loss calculation and tax return.
" Have you ever come across the announcements along the lines of - the offer / discount price is x times, x % of the share price on dd.mm.yy"
yes, but you need to understand that the share price will adjust to the demands of those working in the background, whether it be the City, lenders or whoever ..who are working on a fund raise or D4E etc
.... those in the background don't fall in line to the demands of the share price and anyone trading it
There are often leaks with regard to the likely price of fund raises or D4E prices and as such the market often adjusts to the leak or rumour
The RNS here last week "could" have been as a result of the need to stop leaks or rumours spreading .... so they made sure the market had as much information with regards a possible D4E as anyone else who might have become aware of such negotiations
Cuban_cigar
I thought you were talking about share dealing rather than tax returns and CGT.
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.
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.