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Good spot JCL.
I hadn't read as carefully it seems and assumed it was on contract. I hope whoever said it was correct and we are just waiting for "the new boss" to start before announcing. Think I'd prefer something now, followed by more when he arrives!

Wasn't too long ago their target was 6.90! That went well!

Crikey...fat thumbs tonight from the cold weather!

Is great bews as it means final one or two and in depth negotiations on some sticking points.
That pands soon. Great, this pops up a bit but needs more to follow quickly to avoid a sell off again.

It's not in the bag though. They may ask too much having to service that bonds.

And lots changed fundamentally and the longer the backlog drops and further off the uptick in revenue is, the worse everything gets.

It dropped again I suspect on fear of interest rate rises...being factored up after large pay increases being announced were plugged into their forecasts...if you believe some commentators that is. Companies that have debt....basically all have had future profit forecasts cut as they'll be paying the banks back more.

Indeed Mary. It is almost impossible to work it out with the info we have.
I recently pondered the fact that the oil industry has been badly hit in recent years and with cost of living spiralling, there's bound to be loads of ex staff people selling the likes of WG and PFC to free up cash for normal living. Especiaply in run up/ aftermath of Christmas. Traders know what is being sold off and can drive the price of those down to pick them up cheap.

I think we all can see that the daily ticker price rarely has much corelation to the value of the company. It is more about cash flows, sentiment and what is being bought and sold.

Probably bull**** and making excuses for being so underwater with WG but hey-ho. It helps me sleep at night.

Good companies will come good....and there's still a chink of light for the old golden drip of P.

Oh come on. Fall. That was a wee pump and dump. Seen the bond prices? Some must be willing to take half their original 200k stake to get out at this point. And they have first dibs over what's left when compared to us shareholders....glad I ducked for exit and just hoping I get some of what is left on the table.

LETS HOPE THAT 1.5bn one is awarded tomorrow!!!

Only time will tell.
Another 5% and I'll be back break even. I was starting to worry. They have been slowly edging closer and closer to that cliff and need more of these to land for it them to step back again. I didn't notice payment terms or value with a quick skim but will have to go back and read properly when I have more time.

Ha. Yeah. Kinda agree having spent time at both.
Petrofac were an O&M bodyshop that plays with engineering. Wood much better on that side.

It is indeed Snaps!
And ouch if you bought a bond. With half your money gone, it seems they are conf8dent enough will appear in time and they'll get their money back.

Actually, that is something I had meant to post last weekend. With a bond, they will have to pay interest just to then currently have the cash sit in the bank! Is that the case with regular finance or are those bonds costing more than a regular credit facility? I assumed with a big debt facility, you would only pay interest on the amount of the facility you were using? Is that not the case?

But the two sets of accoints look VERY different. I really feqr for Petrofac at the moment. So much debt, high interest rates, ever decreasing backlog and revenue. They need to start winning some work or it could be tatties to the golden drip of PFC.

Agree. And I really am hoping that this is the start of the recovery! I was looking yesterday at simplywallstreet and their fair value calc which was showing this at 77% under fair value (prior to todays update)!!!

And just for clarity. Orkney are part of a wide range of places testing hydrogen and whole host of other technologies to decarbonise. Wave, tidal, batteries, load shifting etx
Testing though, R&D and not everything that looks good to some, survives contact with the harsh truths of the real world.

I just know from a lot of real projects and economic work on the matter, that I wouldn't be buying what is a very expensive plant...and only running it on windy nights.
If you refer to the graphic below from IEA literature, that's gonna make your hydrogen very expensive to the point other technologies will be cheaper.
https://images.app.goo.gl/9fFeoHE9P8ezaFaY6
(And for info, those are very optimistic fuuture costs for the equipment only. Not the current cost of a large facility storing and distributing it.)

More likely there will be dedicated renewables providing power for this purpose.

I should probably know, being intimitely involved with many of the things happening in Orkney!
There have been many challenges with some of those projects and I think many are staring to see hydrogen being produced there, but less appetite for it in end use applications. It may still be used to transmit and store TWhs of energy from that part of the world to where it is needed. Mainly as pipes can be both cables and batteries, which helps overcome the high efficiency losses of converting to hydrogen and back as it saves a lot elsewhere.
Whether it stays as hydrogen or is again converted is yet to be seen. Synfuels like green kerosene or ammonia more likely in some applications I suspect.

I Certainly dont fancy crashing a car with 700bar of hydrogen under my butt at this time for that matter. Have you seen the mess of a 30bar LPG tank failure in a car!?

Happy to be proven wrong of course

Ha. Well that won't work. The economics of hydrogen are such that you must be using the electrolysers a lot more often than you would only catching curtailed overnight wind. Otherwise your hydrogen will cost even more than it already does!!

Is there any info on the payment terms on this potential 1.5bn contract that was mentioned in the update? Is it lump sum (god forbid!). Have they given anymore info on scope/location/client etc?

Ouch!

That backlog is shrinking to the point that they will struggle to service that massive debt.
I'm preparing myself for the worst now sadly.
Others point out the tiny margins. Add in Net debt V EbITDA and yikes!

Too many UK companies (and indeed people) levereging themselves to the max. A country ruled by and for the benefot of failed banks. With corrupt leaders who mostly have their snouts in the trough!

FeED studies are relatively low value desk based studies. A team of 100 or so guys for maybe a year at most.

So a tiddler. But with the a small increase in chance of jam tomorrow if the client put the resulting EPC to same team which sometimes they do, sometimes they don't.

It's been a while since I last deployed the filter but I think it is time.
What a chip on the shoulder this dudes got!?

Not sure about buy backs either but generally agree with the sentiment.
All things considered, I can't believe we are where we are.
There must have been something going on in the markets that us plebs aren't privvy to. Was someone trying to make it a target?
Nice to see the shorts reducing anyway, and some recognition of how undervalued this currently is. Blackrock are a pretty big player who are well informed and connected. If they are getting out, it is a very good sign IMHO.

So Scott, were you one of the field engineers? Who you claim got shafted and were the only ones you listed who hasn't (in your unbiased ha! Opinion) been paid well?

And what happenes to the 700million liigation claim?