Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
One of the potential assets to sell is its 35.3% operating stake in the offshore Malaysian production sharing contract (PM 304), home to the Cendor oilfield, a long-marketed asset. The focus on PM 304 arises as it is Petrofac's last remaining upstream asset after recent divestitures. Additionally, the company intends to sell its 10% stake in the JSD 6000 pipelay vessel, valued at approximately $56 million in the 2022 annual report. Market observers suggest Shanghai Zhenhua Heavy Industries holds a 90% stake in the vessel and is also exploring its sale.
There's also speculation about Petrofac considering the sale of its O&M business in the North Sea, a significant Aberdeen-based entity with 3000 employees and one-third market control. Despite its potential as a sale candidate, some view the O&M business as integral to the company.
It is to also worth to highlight that, from the start of the month, hedge funds have only increased their position by 0.6%.. This indicates their strategy of suppressing the share price temporarily to capitalize on lower prices before the upcoming week.
Around 50% of the total shares are held by Asfari and Institutional Investors, leaving only half of that available to the public. Additionally, there are Private Investors (PIs) like myself who are unwilling to sell at a significant loss, further reducing the overall available shares to roughly one-third for shorting and day trading and I think around 50% of that third was borrowed for shorting !
If Petrofac issues an in-line or positive trading update next week, or new investors join in, then we can expect a monster rally as shorters scramble to cover their positions.
"Shetland Gas Plant co-owner Kistos (LON: KIST) expects the facility to reopen within the next two weeks, the company said today.
The gas plant was shut down last week to allow staff to investigate an equipment failure which resulted in a release of steam.
Kistos said TotalEnergies, the operator of the plant, continues to investigate the cause of the heating medium system failure at the plant, and in parallel has started work to replace the failed section.
Kistos said it is in regular contact with Total and will provide regular updates on the restart.
In the meantime, Kistos confirmed its average production from the plant in 2023 is still expected to be within the previously guided range of 8,500 to 10,500 boe per day."
The news has just been published on Petrofac's website:
https://www.petrofac.com/media/news/consulting-team-begins-feed-for-neptune-energy-s-l10ccs-carbon-storage-project-in-the-netherlands/