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Wasn't it contract renumerations? Not buys.
Petrofac’s shareholders have to accept that they are on the edge of wipe-out. The company has an US$8 billion backlog of contracts, but without a resolution of its debt issues, customers may well shy away, as McDermott’s own customers did in 2023.
https://www.bairdmaritime.com/work-boat-world/offshore-world/column-on-the-edge-mcdermott-petrofac-the-metals-company-and-cadeler-offshore-accounts/
Just week ago directors bought this share at 26p so if something really bad on debt and company cant pay it why did they buy on thier owe money? A lot directors never buy if they sense thuer comoany cant cope with debt and gone but this case difference so thier money on 26p we can safe buy at 22p and let this show run along .
You can see from the few trades we’ve had this morning that the shorts appear to be reducing - is it Helikon?
Yup looks that way, so many false claims on the internet. It’s written to look like her’s but like most say probably isn’t….
Just searching for some positive I suppose but can’t find any.
That's why I only included the bottom part from Malcy's blog bc it's not her words.
Quoted on Petrocfacs website as hers (albiet limited and removed the bottom part)
https://www.petrofac.com/media/news/petrofac-supporting-national-oil-company-of-equatorial-guinea/#:~:text=Teresa%20Isabel%20Nnang%20Avomo%2C%20Director,grow%20our%20partnership%20with%20Petrofac.
@Badvoc - This is a good contract for Petrofac and adds neatly to the portfolio but it isn’t going to make huge addition to the order book nor the problems the company has elsewhere in the business. I am well documented as being positive on Petrofac for the long haul but they need much more than this to move the dial, or the share price for that matter”
This is not a quote from Teresa Isabel Nnang Avomo, Director General of GEPetrol but a quote from Malcy, Malcy's blog.
Found this ... seems their customers know of PFC issues, but still chose to sign a deal with them....... This a good indication of faith or bad due-diligence. This is from the recent National Oil Company of Equatorial Guinea, contract last week.
Summary of comments:
“This is a good contract for Petrofac and adds neatly to the portfolio but it isn’t going to make huge addition to the order book nor the problems the company has elsewhere in the business.
I am well documented as being positive on Petrofac for the long haul but they need much more than this to move the dial, or the share price for that matter…
Full Comment
Teresa Isabel Nnang Avomo, Director General of GEPetrol commented
““Today’s contract signing marks a key milestone in our journey to becoming Operator of Block B on 1 June 2024.
“We are excited to grow our partnership with Petrofac. By unlocking the huge potential of our indigenous national workforce, we will build with Petrofac’s assistance, an organisation for the long-term management and development of our country’s oil and gas assets.”
This is a good contract for Petrofac and adds neatly to the portfolio but it isn’t going to make huge addition to the order book nor the problems the company has elsewhere in the business. I am well documented as being positive on Petrofac for the long haul but they need much more than this to move the dial, or the share price for that matter”
Source: https://www.malcysblog.com/2024/04/oil-price-challenger-petrofac-i3-and-finally/?_gl=1*wf4dk1*_up*MQ..*_ga*NTg5OTA4NDU1LjE3MTM1MjA0Nzc.*_ga_7W1EBHDKV6*MTcxMzUyMDQ3NC4xLjAuMTcxMzUyMDQ3NC4wLjAuMA..
Tales of the unexpected
Not sure if they can wait for months. These performance guarantees are to be in place for company going forward. Also this is a tool that bod/management is using to hammer PIs.
Current holders at the end of a couple of spirals will only hold 20% of the company if lucky(58% as of now)
Debt will explain the story and If it is still going up no point keeping it.
Financial reports - expect the unexpected
Several on here seem to think that next week or so all will be revealed? Only the year end results are scheduled and these are some 6-8 weeks behind what they used to be (2020 was 25th Feb, 2021 – 24th Feb, 2022 – 15th Mar, 2023 – 27th April), last time they were this late last year, was bad news, omen for this year?? (we already know there will be a massive loss but just how much).
Any update on financial funding etc. isn’t a given, that could go on for several months longer. Updates on contracts, yes agree with others here that PFC love to wrap good news with bad, so could be some contract win news.
Good luck to LTH for the year financial results impact on an already extremely weak share price, least before PFC issued that self-destroying RNS it had gains some slaughter space (33p).
Interesting read: https://commonslibrary.parliament.uk/carillion-collapse-what-went-wrong/
Similar time line for continual loses and still wining contracts
And no I’m not shorter, now some £135k down and considering bolting early next week as this is very risky.
@DanCUK
I was the same, just I had RR on 80p, sold not much higher unfortunately. However I’m not rushing away from here. No doubt, the risk here is higher then RR for sure. However I still believe the order book and backlog. They won’t leave a company with this much future contract to go bankrupt. Many times I’m hesitating, particularly during this week, but I still believe brighter days will come, when all LTH’s will be happy for didn’t sell at the deepest point.
God bless all LTH’s and give PFC a quick recovery and healthy future in business.
Low volume today, looks like shorts didn’t close any position.
If the whole business was taken apart and sold, could pfc pay off all its creditors? Presumably the whole bill would be under a billion, with anything over going to shareholders. It has a reasonable amount of cash to offset this, and parts of the business could be sold as a going concern, so I think as shareholders we would still get something from a well-managed liquidation, probably more than the current share value.
I haven’t a clue how “BBC” got into that text 🤷♂️
Hi Pokerchips, always respect your views and read your posts intently.
I posted something similar to BBC what Shahz said, a couple of months back. You also have a very similar reply, although I’m still unsure the validity of that argument.
If the company came out, when the SP was oscillating around 70 / 80p with honesty along with notifying the market of newly awarded contracts, that things were looking shakey in the short term and they needed a raise to bridge the gap till all fell in place, surely they could have raised then, thus eliminating the perilous situation the company is now in??
Surely the company have allowed the SP to crater, while doing nothing knowing there was a black hole to fill. Thus allowing the short attack in the mean time to exacerbate the situation?
It does stink a little doing nothing, knowing they were heading for the ditch right in front of them
" They could have issued rights at 70,60 etc .."
you think so ?
They dont get to say what price anyone will buy new shares at .... any investors tell THEM what price they are prepared to pay....and that is only if they are indeed interested
the accounts are so bad there was little chance anyone would seriously pay 70p .... most buyers would want to flip them
Rights Issue is an expensive exercise , unlikely they would choose that route ...a cheaper book build maybe but only at a price offered to them
and given that they arent even in the FTSE 350 the options open in terms of City Fund managers is ...somewhat limited
The company need to confirm the solutions to shore up the finance, good or bad, the sooner the better.
Whats the bets on the trading update ? I say end of the month last working day of April ?
Yadda yadda ya
That is the point . They have let it go down to get it cheap. Imagine if you invested as a debtholder and i invested as a shareholder a year ago. You are going to buy shares at below market rate even when share has fallen nearly 60-70%. and what will i have.
They could have issued rights at 70,60 etc .. They could have sold part of business . They could have done some belt tightening. They let it drown to get it cheap.
I know we all had a moan regarding the timing of the RNS the other week and the paradoxical nature of RNS' and those that weren't, and rightly so as it seems to very odd. However, and just to state, that bar the recent stifling RNS, the past year RNS' were obviously timed for the impact, which was generally received well and accordingly reflected in the upward nature of the SP at those times. I'm hoping the RNS that we are now due will do the same and discounting the 'odd' RNS recently will the BOD be trying to continue the impact that the previous year RNS' did have, which is fact.
Albeit I'm hopeful, a large dose of scepticism is reserved for the big reveal, so to the BOD:
"prove me wrong regarding the doubt you have fostered upon the humble PI"
GLA
Cheshire lad
Probably low volume because the shorts want a lower exit. Their departure seems the only thing that moves the SP. Latest RNS was a kick in the teeth for PI’s. The sp does however seem to want to hang around 25p give or take. Update will need to be good, stating legacy completion, debt solution etc. Order book should value the business a lot higher than 25p if it survives, which is question able atm.