Member Info for dan222

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.

Bond holders aren't always best off forcing the issue - let us carry on trading and you'll get all your money, plus interest, or force us into administration and get either nothing or a small fraction of what you lent the company. Petrofac has been around a long time, there's no real reason why it can't carry on trading profitably once the short-term problems are overcome. Debt of around 20% of turnover isn't really very much, it certainly shouldn't be enough to break a company with a long track record of success operating in an area of high demand. I would have thought there should be plenty of alternative sources of finance willing to lend to PFC and make a decent return.

Up 8% over the week!

25p would seem generous to the debt holders - no way could they buy a large amount on the open market at 25p as their buying pressure would very quickly raise the price significantly. The good news is that it's being sorted, the bad news is that they still haven't sorted it.

I didn't think it was particularly bad. Even if they swap 50% of the company for the debt, that's allows them to move forward debt free with a good future. Share price was 500 not long ago, so could easily go back to 200 or so after dilution. The main thing is just survival, as long as the company survives long term share holders should be a lot better off than they are now. Would be nice to have a bit more concrete info though

They normally sell 47% of the award automatically to cover tax and ni, harbour has to deduct tax at the time of the award

Not sure what Hunt is thinking when he extends the EPL as won't win my vote for that and won't win Labour voters vote to switch to Tory or others. Like a lose lose, hurt your voters and get no votes from the rest / What a $£$£$£% .

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The weird way they've got into doing things is they have to pretend they're going to raise more money in the future so the OBR calculates they can 'afford' tax cuts now - they'll be saying extending the WFT raises x billion, which goes toward the election tax cut. Nothing to do with the policy actually making any sense in itself.

I doubt the share price fall over the past couple of weeks relates to Wintershall, probably people who knew about Labour's plan to increase the windfall tax. I doubt it can do much damage anyway, Hunt and Sunak have already completely killed the industry in the north sea.

They're quite rightly spending all the UK profits to get the tax relief, hence the increased capital expenditure and low fcf in 2024, it would be low anyway without the investment, as it would all have gone in tax.

Theres 322 active jobs for petrofac on linkedin worlwide. From everything from project managers to engineers.

All the major HR and execs are really pushing the recruitment PR.

They are about to go into a full recovery as a company. Covid smashed 90% of these businesses in energy sector. Money got tight people redundant. But it doesnt change the outlook and covid can not be a reason to blame performance. It was everyone.

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PFC couldn't really compete for new contracts for a few years because of the SFO investigation. Combine that with covid, and PFC was hit particularly badly. It looks like they're on the way back, though (fingers crossed) and in time PFC's value will hopefully get back towards where it was.

BASF Will find a buyer, they won't be selling in drips on the general market. Shouldn't be a problem at all

Seems to be some confusion about the divi. This article saying it’s an 80% increase

https://www.investomania.co.uk/harbour-energy-to-buy-majority-of-wintershall-assets-shares-soar/

Hbr saying it’s just a 5% increase.

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80% increase split over more shares, equals 5% increase per share.

Can't see any reason why this shouldn't head straight back up to 60-80, where it was before the recent falls. Maybe higher as the future now looks more certain.

Looking at the accounts the last 3 years they have losses totalling £780M and net assets of £112M. If things have materially been worse this year then losses could be over £1bn in total since 2020. Coupled with borrowing, higher interest rates and cash collection already proving a challenge (reported in the half year) you can see probable reasons for the dramatic falls and not all down to shorters!

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In the last accounts I see current liabilities £200million higher than current assets, but not a lot of other liabilities. Given cash flow is (hopefully) improving, and that £200million isn't a huge proportion of sales, it doesn't look too bad to me.

Maybe the shorters have heard of a big customer owing a lot who's not going to pay? You'd have thought there must be something, but then again I wouldn't be too surprised if there isn't.

Not many! Nobody seems to have been buying the last month, hence the share price....

Yes no chance of EPL being watered down. The govt don't need energy security as they won't be around for much longer, they're not fussed about the long term damage, can leave that for Labour to deal with.

Jeff, I don't think people necessarily disagree with what you say about covid and jabs etc (I don't anyway) but it's not relevant on this forum and is really boring. Don't see why you can't understand that if people want to talk about covid they go to a covid forum, if people are here they want to talk about hbr not covid.

How do you filter a user?

Just listened to Sunak…

Didn’t hear anything that helps us?

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It's just about cutting spending on net zero commitments so that they have room for some tax cuts before the election. No chance though that the tax cuts are made to the EPL, they want as much money as they can get because they've completely screwed the economy (EPL being a good example), and their only interest is in being able to pretend they haven't before the election.

Don't really see any problem if the shares are dumped. Company should start another buyback and get them for cheap. Eventually this share should go up a lot.