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"Not sure what to expect from PFC results tomorrow. Any opinions ?"
TheTrading statement on December 17th is proabably worth revisiting, as it wasnt so long ago really ....nothing will really have changed with regards the 2019 year end ..I doubt .
Worth looking at what they said about 2020.
Divestments and asset sales in oil were probably a good thing....the current , very poor, oil price wont help the IES part of the business.
I would like to know if there are any writedowns due on the sale of that Mexican business, as the carrying amount seemed to be higher than the sale achieved..need clarification
Probably see the results much as expected and advised in December, and any reaction will be on the guidance, statement on the year ahead IMO
I was one of those who sold on last week's contract win uplift, as a hedge against this oil/virus situation .....the share price is undervalued ...but...nothing is quite hooked in right at the moment...fears of downturn and all that
Sure isn't Lilo-all the disgustingly uber wealthy wetting themselves this morning and running for the hills just in case they drop a few bob but interesting that the Hang Seng is down less than 2% as opposed to our overall 3.74% and the European Markets even more.
Tokyo is closed for the Emperor's Birthday-just as well perhaps.
PETROFAC LIMITED
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019
· Solid operational performance in all our businesses
· Business performance net profit (1)(2) down 22% to US$276 million
· Reported net profit (2) of US$73 million post impairments and exceptional items
· New order intake (3) of US$3.2 billion; backlog (4) of US$7.4 billion at 31 December 2019
· Net cash of US$15 million
· Final dividend of 25.3 cents per share, maintaining total dividend at 38.0 cents per share
Year ended 31 December 2019
Year ended 31 December 2018
US$m
Business performance
Exceptional items and certain re-measurements
Reported
Business performance
Exceptional items and
certain re-measurements
Reported
Revenue
5,530
-
5,530
5,829
-
5,829
EBITDA
559
n/a
n/a
671
n/a
n/a
Net profit/(loss) (2)
276
(203)
73
353
(289)
64
Ayman Asfari, Petrofac's Group Chief Executive, commented:
"Our results for 2019 reflect solid operational performance across the business and good progress delivering our strategy.
"Best-in-class execution has delivered attractive margins in our core businesses, underpinned by an unrelenting drive to strengthen our cost competitiveness by investing in talent, local content and digital technology. Our migration to a capital light business and tight working capital management has improved cash flow, with agreed non-core divestments set to further strengthen our balance sheet and enhance returns.
"Looking forward, we expect 2020 to be a year of transition. We are encouraged by the improving market outlook, recent new awards and US$37 billion of bid opportunities scheduled for award by the end of 2020. Consequently, we are investing in maintaining our bench strength to preserve our market-leading execution capability. This investment - together with project mix and the low new order intake of recent years - will impact financial performance in 2020, but best positions us for a return to growth as we rebuild our order book."
PETROFAC LIMITED
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019
· Solid operational performance in all our businesses
· Business performance net profit (1)(2) down 22% to US$276 million
· Reported net profit (2) of US$73 million post impairments and exceptional items
· New order intake (3) of US$3.2 billion; backlog (4) of US$7.4 billion at 31 December 2019
· Net cash of US$15 million
· Final dividend of 25.3 cents per share, maintaining total dividend at 38.0 cents per share
Year ended 31 December 2019
Year ended 31 December 2018
US$m
Business performance
Exceptional items and certain re-measurements
Reported
Business performance
Exceptional items and
certain re-measurements
Reported
Revenue
5,530
-
5,530
5,829
-
5,829
EBITDA
559
n/a
n/a
671
They are keeping the dividend for 2020 unchanged... good sign. Also a good pipeline of bidding projects and a positive outlook to growth return. Let us see.
Thanks for getting the results on here so early lilo. Let’s hope we see this move higher now. GLA
unbelievable sp... why are they holding it back?
WG going up doesn't make sense
I don't understand. The dividend at the moment is at 8% and for next year. Positive results. positive net cash. 1.8 billion in facilities. Great outlook for 2020 with 2 billion $ in projects finalized and till date no charges against PFC orcany of its employees.
The FT have a piece on PFC. Can’t read the whole article but they carry the headline on reduced orders. They could of course have spun it more positively with dividend retained or similar..
FT
Petrofac warns revenue slide to persist in 2020
SFO probe into oilfield services group has led to a dropoff in new orders
Petrofac, the oilfield services company under investigation by the UK’s Serious Fraud Office, has warned revenues will continue to slide in 2020 as it suffers a hangover from low orders taken in recent years.
The company last year admitted that it failed to win any new orders in Saudi Arabia and Iraq, two key markets, in the first half of 2019 following concerns from clients in those countries connected to the SFO probe, which was launched in 2017.
Petrofac said in its full-year results on Tuesday that the general outlook for the wider oilfield services market was improving but “we continue to expect a decrease in group revenue in 2020 reflecting low new order intake in recent years”.
The value of Petrofac’s backlog of work stood at $7.4bn at the end of December, versus $9.6bn a year earlier. Revenues in 2019 slid 5 per cent to $5.53bn while earnings before interest, tax, depreciation and amortisation (ebitda) dropped to $559m from $671m a year earlier, which the company blamed on a series of factors, including a different mix of projects in its key engineering and construction division, as well as pressure on margins and investments made at its engineering and production services division.
However, pre-tax profit for 2019 was higher at $192m versus $107m in 2018, as the company booked fewer one-off exceptional costs and re-measurements.
Ayman Asfari, Petrofac’s chief executive, sought on Tuesday to cast an optimistic light on the year ahead, saying the company had the opportunity to bid for $37bn worth of contracts by the end of 2020, which he described as a “year of transition”.
However, Mr Asfari also conceded that investments to maintain “market-leading execution capability”, together with “project mix and the low new order intake of recent years?.?.?.?will impact financial performance in 2020”.
On the SFO probe, the company said: “Petrofac continues to engage with the SFO and will respond to any further developments as appropriate. We are focused on bringing this matter to closure as quickly as possible and believe this is in the best interests of all stakeholders.”
The SFO confirmed its investigation against the company in May 2017 as part of a wider probe into Unaoil, a Monaco-based oil consultancy.
Analysts at RBC Capital Markets called the 2019 results “mixed”.