RE: probably more downside here23 Jan 2021 19:07
What get's me is that every large company faced with similar court action as this. which may result in a very large fine, would normally set aside a large amount of cash in the same financial year as the event occurred, to cover any future fine. Especially after having knowledge of other numberous events that have occurred over the years in various similar companies. This was always going to end in a guilty verdict with a large fine & I'm sure Petrofac knew this and money would have had a figure in mind that would be used to pay for any future fine.
In 2017 Petrofac did a lot to manange the negative impact, by setting up a team to investigate & changing out board members. They implemented a number of other control measures, revised & improved current measures and employee training. The share price fell more than half from around approx 900 to 350 around the time of the accusations and didn't really recover to the previous heights, albeit the down turn was also happening at the same time. My point is I believe that the current affect on the SP in 2021 has been over played. I believe this will bounce very quickly over the next month or so, perhaps even sooner. It's not as if people didn't know about this in 2017 when it was publicised and the impact on SP was seen then....