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Form what I read Metro Bank took a heavy dillution, maybe 3 new shares for every existing share, bond holders also took a hit.
While liquidity was a commonality with Petrofac, the situation at Metro Bank did seem a little more dire and urgent. Petrofac I believe are in a better position to negotiate. Time will tell.
Google news search of Petrofac brings this new article up, could they be the front runner? Unfortunately I don't have access to full article. Be great if they are as ONGC plan to spend $11 billion on various projects. If it is Petrofac hopefully doesn't exacerbate cash flow problems.
https://www.upstreamonline.com/field-development/front-runner-emerges-for-prized-ongc-offshore-gas-development-project/2-1-1603800
English article on Tennet Funding from German Government
https://www.bnnbloomberg.ca/germany-on-cusp-of-22-billion-deal-for-dutch-owned-tennet-grid-1.1996445
Excellent News Harry,
I'd forgotten about the funding issues around Tennet from the German Government, but as you say the Banks certainly wouldn't have.
So once confirmed the Banks will feel alot more confident that Petrofac will be getting all payments related to this mega project. Sound's like the German government will announce something today and help turn SP direction around.
If Schroders reduced from 9.45% to 3.74% on 30th Nov - this explains the sp dropped from 70p to 15p, however following the 20th Dec RNS and subsequent bounce it’s since fallen from 42p to 27p, this must be due to shorters.
I fail to see why those saying SP will now climb that Shorters can’t buy Schroders shares, they haven’t been able to since 30 November.
Petrofac, haven’t yet updated their website to reflect Schroders new percentage holding.
So the BNP article talks a lot about how this will effect voting rights and a power shift, but no mention of who the power shifts to, doesn’t look like the percentage change is enough to have any major effect on who controls the companies direction?
https://www.petrofac.com/investors/shareholder-hub/shareholder-information/major-shareholders/
Thanks Mary,
Petrofac would have contributed to that underperformance I expect. Still a bad time to bail for them and crystallise any loses I’d of thought.
But there situation does perhaps explain maybe having to exit their holding.
Maybe Schroder selling down shows Shorters aren’t main reason for recent declines but still don’t see this development as a positive, why would they exit now when Petrofac seem to be at a turning point?
Schroders have commonly been mentioned on this forum as a respected holder and gave confidence to us other holders, so them selling doesn’t fill me with confidence, or am I missing something?
Supuser79, agree.
I’d find it hard to see Asfari and other large shareholders allowing a major share dilution if they took substantial holdings at the last rights issue, Asfari also bought 1,00,000 shares at about 70p about a year ago, so hardly think he’d be into a placement at these levels, he’ll be keen on other options, and he along with the other cornerstone shareholders will have some influence on what happens. If I were a Shorter this would make me very nervous about the next RNS.
“Abu Dhabi National Oil Company (Adnoc) has picked up a key stake in a leading UK-based player that deals with global carbon capture and storage (CCS) projects”
https://www.upstreamonline.com/energy-transition/adnoc-snaps-up-key-stake-in-european-carbon-capture-player/2-1-1580006
I don’t have full access to this article, Oilheadgame - are you a subscriber as I think you came through last time?
Petrofac is the second most bought investment on Interactive Investor, only beaten by RR and followed by Vodafone, in good company.
Plenty see the true value in Petrofac.
https://www.investmentweek.co.uk/news/4160466/fundsmith-equity-slips-ii-most-bought-list-december
Total Shorts are now slightly higher than pre 20th RNS and share price today is over 50% higher. Shows longs are winning and shorts are cornered.
They are waiting for some nightmare refinancing RNS, which in my view is misplaced, as no matter which option they use to balance the books the future is bright.
The only ones who see this are Marshall Wallace, or the others are in denial about the share price direction in months to come.
I think Directors will be itching to buy at these levels and as soon as finance RNS drops they’ll be free to load up.
This company used to pay dividends equal to todays share price, so imagine the value re-rating when they get back to paying them in a year or two.
Directors buy the dip
https://www.investorschronicle.co.uk/news/2023/01/05/petrofac-directors-buy-the-dip/
Onwardsandupwards - a few updates ago Asfari bought 1,000,000 shares, purely as a show of support, also the other directors bought decent chunks at the time as well, these weren't part of their standard remuneration package. So they certainly have in the past purchased as a show of confidence.
It would be nice to see some buys by the Directors. I remember following a previous "relieving" update Asfari and other directors made decent purchases as a show of confidence. But I wonder if it's because in the update they would not answer asset sale questions and therefore still have inside information preventing them from buying, or maybe they just don't think a confidence boost is needed. Any thoughts?