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Chances of a buyout at sub £1 seems likely as money talks and PFC have the contracts. If PFC go it alone it could also be the ultimate recovery story over next 5 years. With the next market cycle about to kick-off , I would not bet against them.

There will be plenty articles and news floating around PFC Turn around story.

Will get exposure to hedge funds managers etc

With interest rates to be reduced in coming months, the money will be flooding back to commodities and cheap stocks like PFC.

Just happy for the long term holders and sufferers. It is not toast at all but quite the contrary.

those recruitment campaigns and new contracts awards in millions are worth it.

In Oct article, PFC CEO said their back log stand at $6.6billiom.

Today he said they close the year out at $8billion.

So thats $2billion more they won.

Will attract eyes and funds now. thank goodness!!

With that backlog and more to come.

The finance will sort itself out.

PFC have strong roots in MENA (middle east) and in Europe.

With WG, Saipem, PFC. these are guys run EPC contracts and collaborate in number of projects. But I dont think WG or Saipem has the Emirati exposure as PFC which is why i think going forward PFC will be preferred partner for ADNOC projects,as we have already seen.

That was strong conference call.

Management team CEO CFO leading from the front after losing millions in marketcap.

Tough questions asked but like many summarised here, VERY positive and not a company to short LOL

sorting the finance is on going and will be updated before next trading update. So look out for those news.

Tough for the non believers and will likely remain in the future.

I'm glad I will see my 3 figures price again!

I think this is getting bought out in 12months.

9000 employees and $8billion contract won already this year and $400billion more to come next year.

This is getting bought out !!!

Absolutely , the shorts will not touch this for very long time now like i said before

This will settle in at 50-70p region in few days.

Chief Financial Officer, will host a conference call for analysts and investors at 8.30am today.

+44 (0) 330 551 0200. Password: Quote ‘Petrofac Trading Update’ when prompted by the operator.

Dont think shorters anticipated the second TenneT contracts ward of $1.4billion

Jesus 20mins in and cant get a quote or a buy. broker says impossible when i rang

Cant buy at all

The Group has continued to maintain liquidity above its financial covenant. Interesting day ahead

Thank goodness

Strong rns with proper clarity

Let’s just go

Strong hold this one.

Shorters will not touch PFC ever again.

Gone are the days pFc being shorted about 8%

These are not worth it for them

They got guarantees to the biggest contracts and are winning more contracts to 8billion

Just 🤩

Set. Match.

Share price usually follows bond price

They normally trade at same value

Could be similar to them with a US lender.

Fingers crossed. Check out SQZ RNS today.

apologises it has already been discussed here.

I suggest everyone sell up and be done with it

Be mindful that it’s only at 20p

This has been shorted to death since mid October from 80p.

Before the 4th Dec RNS PFC was trading around 15-20p range. So we have gained anything but lost a whole. There is nothing to be happy about.

If we reach 40p or above then we have some momentum.

Before the financial issue came to light which I presume around Oct/nov, it was trading 70p plus with same number of contracts won. So it would be relieve to get to that. Reliefs by adding 2p on a day when the whole market went up by 5-10% is silly

We are still at the bottom

Be realistic

So, if Petrofac generates cash from asset sales, its financial health improves along with its ability to secure these bonds.

Alternatively, suggested one source, clients could make concessions, although this “is not not something they’re talking about today”. A source with direct knowledge of Petrofac lamented its current situation, saying its cash flow issues mean banks will not issue letters of credit, so it cannot pay to subcontractors, contrasting this with the potential of it $5.5 billion backlog won this year. “The company is in good shape with a sound business backlog … the best ever seen in the last four years. However, the capital market is less convinced and has little confidence in the company.”

This lack of confidence is reflected in the stock price, which was languishing at £0.183 ($0.225) at publication time, down from £5.28 in early 2019 and an all-time peak of £16.72 in 2012. In parallel, its market capitalisation plunged to around £100 million this week from about £1.5 billion in 2019 after peaking at £5.6 billion in 2012. In August, Petrofac's future looked rosier when it said free cash flow was set to be “broadly neutral" for 2023 due to cash advances on new EPC contracts and capital being released from legacy contracts. However, this prediction did not materialise, which triggered Petrofac's early December statement on liquidity problems. As one financial source said: “You need liquidity to run your business. You need to pay people and supplies. You have certain obligations to your debt providers. You need to make sure you’re paying coupons on their bonds, paying interest on their debt.”

This huge Aberdeen-based entity employs 3000 people and controls one-third of the market.

A company watcher said that while O&M could be an “obvious business” to sell, “I would consider it to be quite central to the company.” A source close to Petrofac agreed and also downplayed this scenario. Also counting against Petrofac quitting the O&M sector is that a sale could attract the attention of the UK’s Competition & Markets Authority, which a few years ago forced Wood to sell (to Worley) the O&M business that came with its acquisition of Amec Foster Wheeler. “So, if it was for sale, who would buy it?” asked this market observer. When Petrofac revealed the extent of its financial problems to the market early this month, it focused on many issues, leaving perhaps the most important one — performance bonds — to the end.

ources said the key sentence in Petrofac’s 4 December statement was: “Banking and surety market appetite for the provision of these guarantees in support of the contracts won by Petrofac has reduced, resulting in delays”. Jefferies analyst Mark Wilson told Upstream that Petrofac’s disclosure about these guarantees “is a very significant situation” and explained why. “Petrofac’s forward revenues and cashflow come from the execution of new contracts or awards. But without the provision of performance bonds to effectively backstop or rubber stamp a contractor’s performance, that new work may be unable to move forward.” Also significant for the broader EPC market, said Wilson, is that McDermott's recent performance bond problem appears to confirm Petrofac’s overall “reduced market appetite” comment. Nevertheless, he said Jefferies believes “the more important criteria for the banks” is each contractor’s “balance sheet strength, execution track record and type of (performance) guarantee required”.

Upstream was told the contractor may have to raise about $450 million if they are to pay off $250 million of debt due to mature in October 2024 and plug a $200 million hole caused by working capital continuing to be tied up in legacy contracts.

Market sources said two major assets are definitely up for grabs. One is Petrofac’s 35.3% operating stake in a production sharing contract (PM 304) offshore Malaysia that hosts the producing Cendor oilfield, an asset that the company “has been marketing for some time,” one knowledgeable insider said. A contact familiar with Petrofac’s strategy said “it will be obvious to speculate around” PM304 because this is the last upstream asset on the company’s books, having sold everything else in recent years. Another source agreed, saying PM304 is “the key” non-core asset, while stressing the sales price achieved will be influenced by any debt attached to it and the expiry date of the licence.

The other asset to be sold is a 10% stake in the JSD 6000 pipelay vessel, which is due for delivery from a Chinese yard in the second quarter of 2024. In its 2022 annual report, Petrofac valued its JSD 6000 holding at about $56 million, although one veteran marine contracting source said he is “not sure anyone” would pay this amount. Shanghai Zhenhua Heavy Industries is believed to hold a 90% stake in the vessel and has also been marketing it for sale, according to market watchers. Once delivered, Saipem has chartered the vessel for five years, but could retain it for an extra 24 months. One well-informed source with direct knowledge of Petrofac’s options said the company may also consider offloading its O&M business in the North Sea.