Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
In my opinion price of oil and gas tends to go up in time of uncertainty.In my opinion not all contracts petrofac has been getting were profitable but the way it has going is you win a profitable contract and that will cancel out any losses. Great if you can keep on getting new business but you are in deep trouble if you don't get new contracts fast enough and I think that is what has happened here. As far as shorters are concerned I do think they have spotted a weakness and have decided to exploit it.Bondholders are on top of priority list and when they are willing to take 50% loss that you should know that they have given up on the hope of getting their money back.
On top of that shorters tend to be highly knowledgeable and skilled professionals who open a short when they see a weakness. If they short the wrong company then they are stuffed.
How many times do I have to tell you that war but Israel and Hamas had nothing to do with petrofac share price. Opposite is true as if war escalates price of oil goes up and that bodes well for petrofac as sector has more money to spend and that means more business. I suspect after bribery and sfo faisco company failed to gain the business the way it used to. That has impacted cash flow as you can't incur these sort of losses in an year.
Hahaha Neil yes I remember ITS and think it is suspended but heyho there are lots of others too. You can bs your way out of them sort of stocks which get delisted eventually but you have chosen wrong stock to "p&d" as it is not tiny microcap "cash shell" which you can influence with your few hundred quids worth of buys. There has to be a reason and bod has not commented on it. In my opinion company has breached convenants
I have seen it with couple of other shares Horizonte minerals being one of them where share price kept on falling and retail investors came up with similar thoughts. In these sort of situations market always tend to be right. All you have to do it just follow the money and share price has lost 50% in a month and it can be "shorters" who are driving the price down. Another think to look at is bonds as bondholders tend to be really shrewd and long-term investors when they are willing to take 50% cut on their bonds then rest assured that they have a valid reason.
Price of oil has benefited from situation in middle east and that should have boded well for petrofac. Market knows something that we don't as don't private investors have these sort of shares. Not long to find out but my guess is that balance sheet needs strengthening and bondholders could be pushing bod for it.
Problem is each year free cash flow is falling and net debt is increasing not an ideal situation to be in. I hope I am wrong but market is smelling blood and some thing has leaked. I suspect we will see a lot of speculative retail money moving in and out but so far mm are not letting anyone out with a profit.