We would love to hear your thoughts about our site and services, please take our survey here.
Cuban,
Do you know if PFC's pension is in deficit? You are correct to highlight the Pension plan, however, one of the reasons Apollo was interested in WG. was because of the DB pension plan, which is currently running at a healthy 108% fully funded, due to mitigation prior to Liz & Kwasi budget. I won't say the budget was a disaster as it highlighted the LDI issue and the resulting downturn in bond prices, which has affected some DB pension plans, but not WG. It could very well be PFC's DB pension plan is running at a surplus just like WG's, so don't tarnish PFC with the same brush as Carillion, until you know all the facts, especially about pensions and how, when, and what legally you can do with DB occupational pension schemes held in Trust.
GLA, stay the course
Probably Fidelity?
GLA, whatever happens on Tuesday!!!!
Incentive stock options must mean performance targets being met, which is a good thing, BAU then. I wonder if they will be sold in to a rise in the near future, and what will drive the forthcoming SP rise?
GLA
ADNOC?
GLA
Mr Curtis,
How do you explain WG. being roughly £1.8 billion in debt then selling their Built Environment business for $1.8 billion (note the difference in £ & $), maintaining debt around £300 - £400 million, then Apollo pop up and approach. How do you explain that, when not considering or applying a similar circumstance/logic for PFC.
NB: I note you've mellowed with "sexy" asset sale.
GLA
Once again Mr Curtis wants to assume that BH would not take a change in the BH terms lightly. I agree that nothing comes for free, but to state BH would not agree to asset sales without Equity taking a hit is a big leap of faith. What about a sell off of a whole division, with a major pivot transition towards positioning firmly within renewable energy projects and consulting, then a realist on a more acceptable and dynamic exchange? That’s one way for a new CEO to make their mark, improve the balance sheet then go hell for leather concentrating in more specialised engineering deliverables with a smaller agile workforce, now that the order book is filling up and weighted in that direction.
GLA
Keep an eye on the MSCI index re-positioning dates.
I'm interested for PFC as under huge short attack, and when they move out of MSCI there are large volumes of shares traded. With PFC I was hoping they would be gobbled up by Shorts changing their position to cover and possibly go long. Shorter's will obviously know when certain indexes reposition and the likelihood that share that would not ordinarily be available through normal liquidity would suddenly be available, which appears to be the case with PFC and so far today the PFC price has not dropped, so at this moment I can only take that as a good sign that possibly the PFC shorter brigade are repositioning to go long and catch the upswing after their shenanigans, albeit any material turnaround will take time.
NB: I don't hold a position in ENQ, just happy to post to add a little more context for you guys.
FYI:
https://app2.msci.com/eqb/gimi/smallcap/MSCI_Feb24_SCPublicList.pdf
FYI:
https://www.woodplc.com/news/latest-press-releases/2024/wood-drives-significant-growth-in-middle-east-with-850-million-of-wins-in-2023
https://www.woodplc.com/news/latest-press-releases/2024/wood-continues-long-standing-relationship-with-equinor-in-brazil
GLA
Possibly gearing up for forthcoming M&A season,....drive it lower then the upside is so much greater?
Pure speculation on my behalf, and could be both ways, as we approach the anniversary of Apollos walk away and the outlook looks brighter for the sector, to a certain extent and depending on your own point of view.
GLA
WG tanking last and this week, no coincidence shorts have increased their also. Being played, but both companies remain in demand, just look at the available jobs/roles here and at WG.
NB: WG has 300+ roles available in UAE alone
GLA
FYI:
https://carbonherald.com/new-collaboration-petrofac-and-aggregate-industries-to-explore-co2-capture/
https://www.oedigital.com/news/511152-skandi-emerald-ahts-set-for-petrofac-s-northern-endeavour-fpso-job
https://www.ogv.energy/news-item/asco-awarded-emergency-response-agreement-with-petrofac
GLA
That's the point, it never was a small company, and we hope in the future it will regain it's rightful place among the sector leaders.
Regarding POFCY, we have to give our American friends and subsidiaries the chance to offset their net short positions without disclosing their actual holding below any TR thresholds. Over the counter under the counter, MM's will help out anywhere they can make money, and with off the book trades there is gold in them hills.
GLA
Fidelity have seen value, but the value is longer term.
If the management team turn the company around, which appears the first green shoots are there, then the SP will naturally recover in time. Failing that and on the same progression, then you would have to think envious eyes would again be looking on and again have some Blue Horseshoe, who knows.
It's a hold all day long for me, but I now only hold a very small position, as I'm way over my exposure limits in PFC, albeit it's a pure binary play for me, I see greater uptick in PFC than WG, but that's not to say there won't be any uptick in WG, there may be, or there may not, time will tell.
GLA
If you want raw materials for all them products and semi-conductors, who are you gonna call?
If you want fossil fuels for all them products, who are you gonna call?
If you want fossil fuel energy, who are you gonna call?
If you want renewable energy, who are you gonna call?
If you want to change the climate (CCS), who are you gonna call?
GLA
Back from Davos and realized their plans must include EPC firms, without them we would have no society and the standard of living we all enjoy or aspire to. Meta, Google, Microsoft, Tesla, are nothing without EPC companies. The world relies on EPC companies to drive prosperity, there is nothing in life more sure than that.
GLA
Big jump at WG in the last 10 mins.
GLA
if wg acquired pfc that would mean roughly a combined group debt of about 1.2 billion but with a backlog of work of around 15 billion. it could work, but where would wg get the money for such an approach, thus adding to the debt pile and pushing it past 2 billion, *** packet thoughts, and somewhat a pipedream i would think....apollo is a different question though, if they are still sniffing around then i suspect either wg or pfc will make it public, no harm in getting that sp up for disgruntled investors, poor schroders if that happens.
gla
Thanks Paul, that's a good HEDGE article you present.
So are you going to state you are short in equities and long in bonds?
Thanks for the advice, but what's more important is the advice ADB is giving the senior leadership. I like to think, whether true or not, that ADB was onboarded in some sort of capacity not solely for his financial acumen, but also to keep a tight ship with only direct communications with the senior leadership team, loose lips sink ships and all that. It appears TK is fully aware of this, and as others have stated the larger shorts are now to a certain degree in the dark and are guessing, or at the very least trying to supress the SP long enough to either get out with a profit on the downside or if that's not attainable then average out that break even by going long for when the tide turns, which it will do before the major M&A season is upon us.
GLA
Fair value is £1.25 per share. That's based on all the considered variables in play with PFC, of which there are many!!!
I think I'm a tad conservative, but in a M&A scenario £1.25 is probably a starting punt to see how the land lies.
GLA