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Form August 2023 results:
- We remain focused on closing out legacy contracts, with five of the remaining eight contracts expected to be completed(5) during the second half of the year or early in 2024
-Bidding activity remains high with a total pipeline scheduled for award in the 16-months to December 2024 of approximately US$44 billion, of which US$8 billion is scheduled for award in 2023.
-Asset Solutions has secured revenue of US$0.7 billion for the second half of 2023. The business is expected to continue to perform well, with revenue growth driven by focused geographic expansion and new order intake in Well Engineering & Decommissioning. We expect EBIT to be second half weighted, with a healthy full year EBIT in 2023, albeit lower than 2022, reflecting the roll-off of certain high margin contracts and a higher proportion of pass-through revenue.
-At Group level, we expect cash flow to be broadly neutral in 2023. In the second half, we expect a positive tailwind from cash advances collected from new E&C awards won in the first half, coupled with an unwind of working capital.
My post from last night:
I've noticed that Petrofac’s bonds decline ended last week and it has been slowly recovering since. Despite this, Petrofac’s share price dropped by over 33% since last Tuesday. I think hedge funds find it easier to manipulate the share price lower rather than continuing to short the bonds, which can be more expensive & harder to buy in decent volumes and of course come with higher risk (different to buy in volumes if quickly needed) and of course impossible to nakd short sell unlike shares. The bonds are mainly owned by IIs & Banks. The minimum purchase unit for bonds is 200k, but on the other hand shares can be purchased in any volume and short positions can be increased in smaller increments. In my view, this appears to be a coordinated short attack, creating fear in the market to triggering stop losses and load up on the cheap while they can.
I can see a meaningful rebound before the trading update.
https://www.boerse-frankfurt.de/bond/usg7052taf87-petrofac-ltd-9-75-21-26
I've noticed that Petrofac’s bonds decline ended last week and it has been slowly recovering since. Despite this, Petrofac’s share price dropped by over 33% since last Tuesday. I think hedge funds find it easier to manipulate the share price lower rather than continuing to short the bonds, which can be more expensive & harder to buy in decent volumes and of course come with higher risk (different to buy in volumes if quickly needed) and of course impossible to nakd short sell unlike shares. The bonds are mainly owned by IIs & Banks. The minimum purchase unit for bonds is 200k, but on the other hand shares can be purchased in any volume and short positions can be increased in smaller increments. In my view, this appears to be a coordinated short attack, creating fear in the market to triggering stop losses and load up on the cheap while they can.
I can see a meaningful rebound before the trading update.
https://www.boerse-frankfurt.de/bond/usg7052taf87-petrofac-ltd-9-75-21-26
Form the same RNS which you have quoted from:
Aug 2023:
- We remain focused on closing out legacy contracts, with five of the remaining eight contracts expected to be completed(5) during the second half of the year or early in 2024
-Bidding activity remains high with a total pipeline scheduled for award in the 16-months to December 2024 of approximately US$44 billion, of which US$8 billion is scheduled for award in 2023.
-Asset Solutions has secured revenue of US$0.7 billion for the second half of 2023. The business is expected to continue to perform well, with revenue growth driven by focused geographic expansion and new order intake in Well Engineering & Decommissioning. We expect EBIT to be second half weighted, with a healthy full year EBIT in 2023, albeit lower than 2022, reflecting the roll-off of certain high margin contracts and a higher proportion of pass-through revenue.
-At Group level, we expect cash flow to be broadly neutral in 2023. In the second half, we expect a positive tailwind from cash advances collected from new E&C awards won in the first half, coupled with an unwind of working capital.
I sent them an enquiry email & I would recommend you should do the same: https://www.petrofac.com/investors/investor-relations-contacts/
Today's has experienced the highest trading volume per day this year reaching around FIVE times the average daily volume.
Shorters are trying to exhaust private investors to sell to enable them to cover their short positions on the cheap before upward movement.
Some of the chunky buys going through at the moment
27-Nov-23 13:33:39 32.336 250,000 Buy* 31.54 31.88 £80.84k
27-Nov-23 13:29:22 31.816 135,119 Buy* 31.02 31.62 £42.99k O
27-Nov-23 13:27:39 31.62 50,000 Buy* 31.00 31.62 £15.81k O
27-Nov-23 13:27:34 31.6563 110,521 Buy* 31.00 31.62 £34.99k
Today's has experienced the highest trading volume per day this year reaching over three times the average daily volume.
With COP28 just three days away (it's worth noting that the ADNOC CEO is the president of COP28, and ADNOC awarded a $615 million contract to Petrofac last month for constructing the largest carbon capture projects in the MENA region ahead of COP28) and trading update in three weeks, I believe shorters are trying to exhaust private investors to shake the weak hands to cover their short positions before upward movement. The recent stabilization and modest recovery of Petrofac's 2024 bond drop suggest a potential rebound from the current levels as well
Today's trading activity has experienced a substantial increase, reaching approximately three times the average daily volume. With COP28 just three days away (it's worth noting that the ADNOC CEO is the president of COP28, and ADNOC awarded a $615 million contract to Petrofac last month for constructing the largest carbon capture projects in the MENA region ahead of COP28) and the impending trading update in three weeks, there are indications that hedge funds are making a strategic move to accumulate stocks at lower prices to cover short positions and likely in preparation for an anticipated upward movement. Furthermore, the recent stabilization and modest recovery of Petrofac's 2024 bond drop suggest a potential rebound from the current levels.