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I think the link has been taken down? I couldn't access it either, and also from stand-alone web search, not accessible.
GLA
Harry,
Apollo were not quoted £1.7 billion, Apollo offered £1.7 billion, news leaked and gave the SP a shot in the arm, but then decided to walk away.
Of course that was all after the Built Environment sale (at x 16 multiples) for a similar amount, which in fact was close the debt burden at the time. This offered assurances to creditors/covenants putting the balance sheet in better order, and had previously gave the SP a shot in the arm and then found it's level prior to the Apollo approach.
GLA
Assuming you've all seen this regarding Masdar & RWE:
https://www.cityam.com/cop28-rishi-sunak-unveils-massive-11bn-deal-for-uks-dogger-bank-wind-farm/
GLA
I agree, if at all required, and I'm highly skeptical, there are many other ways to strengthen the financial other than RI or D4E. The obligations of the BOD are clearly set out, my gut tells me if there is nothing in the weekend press that definitely and unequivocally states the facts and reasons for what we've witnessed with the SP, then, yes there could be nothing to worry about and sit tight. Alternatively, to improve the financials by way of not at the expense of both equity and bond holders, steps may already have been started many weeks ago and my bet is a part/full sell of a division. The same thing happened at WG, new CEO, put pressure on, force CEO hand (selling of Built Environment for many multiples x 16 = balance sheet corrected) but make hay whilst supposed confidential negotiations are happening, hence why no official communication is forthcoming. There are some similar companies and service providers to the fossil and renewable sector that do have cash to purchase, that's not even mentioning PE.
I have no knowledge of anything, as I'm not employed by PFC, I'm just comparing my own experience at WG. it's all very similar, so RI or D4E terms are bounded around as scare stories, when in fact something completely different may be happening, or even nothing at all, and BAU until the 20th.
Personally as a large equity holder who has been averaging down, I would be disappointed if it turns out that the PI lose out in a major way, but nothing is actually factually stating that, and also the more time goes by with no official word, the better it becomes, as the BOD and new CEO could be in very big trouble if proven they have held back material information that should've been in the public domain. This may come on Monday, if not, the plot thickens.
Good luck to all, and if struggling to comprehend the SP fall , take time out over the weekend, and hopefully get ready for a few positive surprises over the next few weeks.
IMHO, If we don't get any TR1-1 soon, the sensible conclusion is that PFC is getting taken out. The hedge funds are doing the softening up, both on retail holders, no doubt for their own benefit, and pressure on the board. It might not be as a straight take over and could just be a division at multiples of the current SP, however, where the SP is, why not the whole shooting match?
GLA
Great insight and overview regarding the way the world is moving. It's a good job we have these companies that can cover the solutions, projects, and operations required for both fossil and renewable energy. Make no mistake companies like UK based PFC & WG. are integral to the requirements of the wider world and the challenges we all will face as a species, and that is not overdramatic in any way.
PFC's (et al) employees are probably more important to the world and our way of life than doctors and nurses, definitely more important than politicians, advisors and lawyers. Therefore, to me it makes perfect sense as to why PE or a peer would be interested in PFC, regardless of debt. I know that one of the major reasons (not all though) why Apollo were interested in WG. was because of CCS. The thing with CCS, unlike with O&G, it can be beneficial at both smaller and scalable levels (including the by products that don't get stored) and can be virtually done anywhere, it's only currently that the re-purpose of old O&G reservoirs are advantageous and convenient locations to do so for the storage part, thus drawing on the engineering expertise that is already in situ at a local level. Therefore, who will be the winners in the future regarding CCS, the same sovereign state oligopolies we have now, or will westernized states, companies, including PE make an all out play for the tech and dominance, or, will there be room for all? It's unknown at this time but no doubt there will be a hell of a fight over the next 3 decades regarding this, and at this time PFC is at the forefront of this fight and should benefit from CCS in the not too distant future.
GLA
Mine must be Dumb Money then.
GLA
We are now in a closed period.......PFC is in my basket and ready to checked out sometime in the future, who knows when that will be?
NB: Most of the time, and for all companies, the nominal Director buys/awards can simply be overlooked. However, I've found, on rare occasions, and with hindsight through past experiences during my working life, that a subtle change of the date of the buys/awards can sometimes be telling of what's to come regarding business activities (both positive and negative). Therefore, I think everyone should pay more attention to them, but I admit only in combination with ones own other reasoning and data room analysis they can add, or give some kind of visibility to what cannot be seen at the time.
GLA
FYI:
https://www.petrofac.com/media/stories-and-opinion/adnoc-gas-delegation-recognises-petrofac-s-nationalisation-efforts-in-the-uae/
https://www.petrofac.com/where-we-operate/petrofac-in-the-middle-east/united-arab-emirates/
https://www.thenationalnews.com/climate/cop28/2023/11/22/uae-faces-risk-and-opportunity-in-green-energy-transition/
https://www.petrofac.com/media/news/petrofac-receives-the-gold-seal-for-creating-sustainable-impact-in-the-uae/
https://www.petrofac.com/media/news/adnoc-gas-awards-petrofac-contract-for-landmark-carbon-capture-utilisation-and-storage-project/
https://www.petrofac.com/media/news/adnoc-awards-petrofac-us-700-million-epc-project/
GLA
FYI:
The shares we need are everywhere around us.......watch, listen, and digest
https://www.youtube.com/watch?v=f1yWSePMqsk
GLA
Article doesn't say much, just references The Telegraph:
THG mulls taking its nutritional business public in the US
THG, which owns Lookfantastic and Cult Beauty, is exploring plans to list MyProtein, its nutritional arm, in the US.
THG is exploring plans to list MyProtein in the US as pressure mounts from investors for the separation of the nutritional business, The Telegraph has reported.
This comes after shareholder Kelso Group, which increased its stake in the business to 8 million shares earlier this year, continues to advocate its separation from the business, thanks to MyProtein’S value as a global consumer brand.
In a statement, Kelso Group said: “We believe that THG’s Nutrition division with its main brand of MyProtein should be valued as a global consumer brand, given its near $1bn sales, double-digit EBITDA margins and increased product innovation in the current year.
“This division alone continues, in our view, to be worth more than the market capitalisation of THG.”
The possible listing is a surprise given THG’s challenges since it listed on the London Stock Exchange in 2020. Share prices for the health and beauty pure play retailer have dropped by over 90%, with its valuation decreasing from £6.5bn in September 2020 to £850m at the time of writing.
In its latest interim half-year results, THG’s operating losses deepened due to a one-off, non-cash charge of £26.2m related to the sale of its loss-making OnDemand business. While the retailer said this has improved its overall financial guidance, the disposal took its operating losses to £99.5m, from losses of £89.2m for the same period in 2022.
GLA
My view on the matter, FWIW, it's nothing to do with debt just fear and loathing caused by macro events combined with no official word from the company. However, the longer it goes on with no official word from the company commenting on the SP decline, the more I feel, in some small way, more comforted by the fact. I know it's not the done thing for a company to comment, but it has been known that an official word from the the company can quell rumors, along with Director buying, of which we have had none. It's all a bit strange and a bit of a paradox, truth be told. If there was bad the board would be obliged to notify the market a.s.a.p........which they have not, so logically you would assume there is nothing bad based on the current timeframe surrounding the SP and bond decline.
The only conclusion I can come to is that with the news we've had since the SP decline, seemingly all positive, and along with the ratings upgrade, is that an offer has come in for the business, which fits the narrative with the paradox mentioned. The shorts have seen their chance, knowing the board cannot publicly comment. If the shorts have inside information it may turn out to actually be +ve not -ve.
The question everyone should be asking themselves is why not bid for company, even with the debt, when the bar is so low, any premium on a bid (from the low bar) would probably be towards the £1.25 range.
If I'm wrong, it's my own fault for topping up, I'll just have buy a lot more to possibly average down further, but on PFC I'm risk-tolerant
GLA
FYI: For clarity GLG's last but one disclosure
GLG Partners LP PETROFAC LTD GB00B0H2K534 0.82 21/08/2023
FYI:
Position Holder Name of Share Issuer Net Short (%) Position Date
Astaris Capital Management LLP PETROFAC LTD 1.70 13/11/2023
GLG Partners LP PETROFAC LTD 0.79 13/11/2023
Helikon Investments Limited PETROFAC LTD 0.74 13/11/2023
Millennium Capital Partners LLP PETROFAC LTD 1.20 08/11/2023
Helikon Investments Limited PETROFAC LTD 0.63 08/11/2023
Astaris Capital Management LLP PETROFAC LTD 1.52 06/11/2023
Helikon Investments Limited PETROFAC LTD 0.52 06/11/2023
Millennium Capital Partners LLP PETROFAC LTD 1.11 03/11/2023
Astaris Capital Management LLP PETROFAC LTD 1.30 02/11/2023
Millennium Capital Partners LLP PETROFAC LTD 1.04 02/11/2023
Astaris Capital Management LLP PETROFAC LTD 1.40 01/11/2023
Millennium Capital Partners LLP PETROFAC LTD 0.91 01/11/2023
I don't have level 2, but can anyone confirm if we touched below 40?
GLA
I've been brave all day and have been buying with every drop, this was the latest and not yet confirmed:
a little trade placed then eventually executed
Order Accepted
You’ve placed an order to Buy
1,000
PFC
Petrofac Ltd
Indicative Price
£0.3918
£395.78
Order Executed
You’ve placed an order to Buy
1,000
PFC
Petrofac Ltd
Indicative Price
£0..414295
£418.29
GLA
I suppose you would class that as good gearing?
Or playing with others money, and use a scatter gun approach a bit like a dartboard and eventually hit the correct number....still waiting for those numbers Matt.
#putuporshutupmatt
GLA
FYI, for those who haven't seen the article without the Paywall:
https://www.energyvoice.com/oilandgas/540666/petrofac-headcount/
Energy services giant Petrofac (LON: PFC) has hired 3,000 people in the last 12 months amid a strong order book.
The London-listed firm said 1,000 of its new hires have been in the UK, where it has renewed more than 80% of its existing work.
Petrofac, like other companies of its type, made major cuts during the Covid pandemic – including dropping around 20% of its global workforce of around 12,000 in April 2020.
Today the company has 8,600 people worldwide.
In recent months the London-listed firm has racked up North Sea wins and extensions worth multiple hundreds of millions of dollars with firms including Repsol, CNR International, Saipem and NEO Energy.
Elsewhere it has made big wins, including a $1.5bn petrochemicals deal in Algeria.
Despite losses being expected in H2 as part of legacy E&C issues, the firm said at the end of June its order book stood at $6.6bn, nearly double that at the start of 2023.
In September it made 251 hires, 80 of which were in the UK.
Group director of HR Des Thurlby said: “2023 has been Petrofac’s strongest period for new awards in many years. We have renewed more than 80% of our existing work in the UK and secured new projects in both the traditional and renewable energy sectors in Europe, the Middle East and Africa.
“As we ramp up our new projects, we have created exciting opportunities for our existing talent, and we are welcoming a large number of new team members at both an experienced and graduate level.”
By Allister Thomas
07/11/2023, 7:00 am