Member Info for dan222

Harbour looks to be getting out of Carbon Capture (which is probably a good thing): https://www.upstreamonline.com/carbon-capture/harbour-energy-to-exit-uk-ccs-project/2-1-1746055

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Persil ?

Makes sense to have jacked up gold production last quarter, given the price. Silver production will presumably be ramping up this quarter

Ha, I should say I didn't 'just' buy, I bought 2 or 3 years ago, so yes I've been following it a long time and agree like everyone that it should be higher, but it seems we're all wrong!

I just bought because they didn't have much debt and looked cheap on the charts, but I don't really understand the carbon capture part, including associated future liabilities and commitments. Is it linked to decommissioning? Maybe it's part of the reason hbr seem so undervalued?

The only reply I got to my post commenting on it was something about a nutjob to filter, don't know if that was aimed at me. Anyway, it worries me that Harbour are involved in it as it's not likely to end well, given it relies on politicians sticking with a trendy idea(net zero) over the long-term.

Aren't harbour involved in carbon capture?

It seems completely mad as a business area, and no doubt will get dumped in a few years when government interest and funding dries up. Does anyone know how significant this area is to harbour? When interest in it disappears will we be left with huge overhang expenses?

Good news from the new president:

https://uk.finance.yahoo.com/news/mexicos-president-tells-investors-money-183049411.html

OIL FUTURES EXTEND GAINS, U.S. CRUDE UP BY $2 A BARREL TO OVER $70 A BARREL, HIGHEST SINCE SEPTEMBER 2024

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It's only 1 October!

Awful results, and no real reason to believe the 8 billion backlog will make a profit if their current contracts are loss making. An 8 billion backlog could just mean a further 800 million in losses is coming

I don't think £600m of debt is being converted to equity, the agreement is with 47% of debt holders, the rest will presumably have their debt repaid.

This week's share price all depends on the results on Monday. If PFC are now making money, things could be looking rosy. If they're still making losses then the short-term looks very bad.

We get results on Monday as well, will be very interesting to see if PFC have been making any money recently! If they have, things might look a lot better on Monday.

Debt is £750m. Assuming £600m of debt is swapped for equity, current shareholders need the D4E price to be 12p a share to come out with 10% of equity.

It might not be that bad, presumably at some point money has to start rolling in from all the work PFC are supposedly doing on contracts old and new.

Really not much detail in the RNS beyond what we already knew, but at least we know now that they're getting on with it. It sounds like we'll also be given the chance to buy in as well (not sure many would take that generous offer at the moment!).

Is this maths roughly correct: Currently around 500m shares in issue. Assuming £200m of debt is exchanged for 5 billion shares (at 4p a share) then current shareholders will own 10% of the new company (500 million / 5 billion). A new Petrofac without cashflow issues would presumably be worth at least £1 per share, so 10p a share after the restructuring.

Does anyone know how much debt is going to be swapped for equity?

Great, I'm glad Mexico has a government which is putting its people above corporate greed and protecting its environment, that's exactly what governments should do. Doesn't mean they're going to nationalise all mines.

4. Long term investors who haven't panic sold and are stuck holding. PFC don't need to repay $850m in 2 years, a large chunk will be repaid through asset sales and some kind of D4E and like most businesses they will no doubt roll the remainder into new debt once it's at a more reasonable level. It's just the cash flow situation that needs stabilising, hopefully PFC are well onto that now.

The whole rise in interest rates was just another distraction as interest rates were never increased to 1% above the rate of inflation.

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Interest rates now are more than 1% above the rate of inflation.

It's clearly been approved since the political posturing by a couple of minor politicians a few months ago that was mentioned in the article. Don't see what the problem is

Why aren’t shorters closing? They will next time a truly positive RNS appears and they can do so without creating their very own short squeeze. Why are bonds junk? Uncertainty as to when they will get paid. The creditors are allowing Petrofac to trade through as this is the only way they get paid in cash.

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This is just nonsense. Why are shorters waiting for a positive RNS when it will cost them more to get out if there is one?