Great post ADVFN....a rarity31 Jan 2021 07:38
Whites 123 post
Not sure how many of you call and speak to IR or anyone else at PFC.
I generally call them a couple of times a year just for a "Catch up".
I read someone saying they could have to raise funds to pay any fine... LOL...
Sorry, that isnt going to happen.
But what is on the table is some high power meetings to try and sort this mess out without any liability being accepted.
Sami had only held his position for 2 weeks when the latest SFO announcement hit, and it landed on their desks at 4.30pm on Thursday.
Sami was scheduled to be flying out to UAE that very evening and was going through customs when it landed.
They knew they had to respond and they did so.
Suddenly the agenda for his visit was changed from "Business" to ensure shareholders were onside..
The SFO threw a curveball.
Shareholders are resilient though and this is demonstrated by the fact there have been no reduction in disclosable interest.
The only changes have been in short sold positions, and until this week that was to increase shorts.
As for comments regards doing business with PFC, again to suggest that companies are holding back is to be frank, quite laughable.
Tenders for contracts have grown despite the economic slowdown and secured revenue is just 200 Million below comparative pre-covid times.
Covid has been the factor the world has had to deal with and consider the average oil price for 2020 was just a few cents above $40 per barrel.
As we enter 2021 with vaccines and industry clambering to get going again we currently sit with an average price of oil thus far at above $51 per barrel.
Sami has intimated he is willing and ready to speak to the SFO.
He has even intimated that PFC may be willing to find a way to closure by accepting a fine with no liability.
The SFO will this month succeed in seeing David Lufkin sentenced and off to do some bird.
This alone will draw one line under the situation, and there is expected to be no surprises as it is widely believed that the sentence has been agreed and the hands up to 3 further charges earlier this month were to allow SFO to close those lines of enquiry.
Petrofac in the meantime carry on winning Multi Billion $ contracts and the news this week from Ineos / PFC confirms that their relationships are strong.
The SP was hammered when the SFO investigation broke 4 years ago.
Since then the SP has been hammered again and again on the same news, to suggest its "New news" each time it runs to print.
The SFO average investigation time is 4 years 7 months, so you can see that the investigation thus far has not even reached the average time.
The sum of parts does not reflect the true story, what we are seeing is fear and more fear being peddled and armchair investors accepting this as gospel. The remit of SFO is not to bankrupt a company, and chatter again of fines that will see the demise of PFC are ludicrous.. Headlines: "SFO complete investigation and hand out fine that cripples
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