Member Info for Simplyme

Could PFC simply decide to pick and choose their new contracts and what ones they give a guarantee to - the ones with the biggest margins (or ask for an upfront payment if the company wish for PFC to take on for the guarantee which is returned to them on completion?). This is pretty common in business and relatively simple to do and requires little capital investment but simply trust between trusted partners such as ADNOC and PFC. D4E will not happen as the company could drop a contract rather than go down this path and still have a larger backlog.

Agree - not a great update and although we all agree that long term it is more compelling for HBR most investors will have better returns from other companies for 2024 especially in SP growth so can't see this going well today

GG - you could produce for 50 years but whether it is economically to do so is a different matter which is why I would like your insights into commercial productivity as we all agree production will fall and there comes a point in all wells they are no longer economically viable which is the number I wish for as this is not my area of expertise but knowing this makes a huge difference to whether this is an investment or not - rather than keep asking I would appreciate your view on the figures and commercial output

86 new jobs advertised over the last 7 days - defo ramping up for all the increased orders and work :)

Only 10 new jobs added today and over 200 new jobs in total - recruiting very heavily for all of the new work- must be in trouble as obviously they would cut roles if they were major risks

https://petrofac.referrals.selectminds.com/latest-jobs

And thanks vistaman for giving some idea to me as this is useful to know others are seeing similar - thanks

This is the important aspect for me - gas recovery is better than oil and is usually between 50-80% and why I got to approx. 12 years but people told me I am massively wrong with my figures hence what have I done wrong. Obviously production decreases each year so it is not simply 17 years halved if 50% rate so hence why I came to around 12 years as these are older fields I would assume nearer to the 50% - great if someone who was more of an expert could be more definitive.

So how many years of reserves do others get? And how do they get to this figure?

Thanks to some for the additional info - as the dividend is 25% at present (roughly) per year - not sure how anyone thinks you would get your investment back in a year (greygeorge) great if you could give the figures. Otherwise we all know who the idiot is!! However as stated I expected the sp to go down by around 10% so you actually lose a pound and gain 2.50 which is a 1.5 profit but people like myself pay 40% dividend tax so actually profit is greatly reduced. . Next year the dividend would reduce and so on. Thanks roddw1 - article was useful but still states debt takes 10 years to get rid off which I agree with but also have the wells to cap but if the reserves are only roughly 12 years it does not leave much over at the end. Thanks for the information

Thanks for highlighting this error - no it did not as I took it from the figures from the interim report 2023 (up to Sept)

I am not an investor but have looked at DEC accounts and did consider investing. Please ignore my ignorance as I am relatively new but this is what I have interpreted from their accounts. Their current reserves seem to be for about 12 years max. and it is expected that there will be a 10% decrease every year from current production which in turn will impact the revenue and profit. So in turn without further acquisitions I would expect the dividend payments and share price to also decrease slightly over time (however you are compensated by the dividends which make up the shortfall). Hence I see the current price as around correct as you get your money back in dividends but the value of the company and shares also diminishes each year but less than the dividend so every year you make a small profit. After 12 years the company has no reserves and you have got more than the money invested back (if you bought at the price today). Is that everyone elses understanding? Happy to be shot down as relatively new to the company and as stated considering investing if the price drops a bit more. Please do correct me.

What will happen will happen....whether a bull or a bear. Most of the talk now is just rubbish and views based on limited information and not that informative. I am long with an average just above the SP so my only concern is whether to top up more and wait either for the expected sp rise or potential dilution - same for us all no matter our position. Just a waiting game for us all and then for us all to decide on our exit strategy and when. GLA.

As US is shut today that won't be a factor this afternoon :)

Gold on another run up - hope we get the second mine running ASAP - can see gold reaching $2500 at some point this year and don't want us to miss that!!

Agree with slift post except that that PFC have not made massive cost savings and are hiring at a colossal rate. This is not a sign of a company that has major concerns and given the ownership structure very much doubt D4E would ever be majorly considered. I do see a 'partnership' or cornerstone investor but all roads all lead to protecting the main shareholders and that the company is aggressively winning contracts and hiring staff so their concerns are not major!

Wood group reported their results today - steady results and getting steadily better year on year with good future projects and more 'green' work in the pipe-line which should be a boost for PFC as well as the sector and contracts are improving for both in the future.

As a past investor here I looked at the rns today and saw that the war as expected is having a toll but also that a lot of their staff are in the army. They cannot simply increase production like some wish even if trade routes re-opened and they have a lot of fixed costs. I think this will do fantastic if the war ended but at present it is going to drip downwards in my view until the war stops as they are losing staff/money and although a great product they have fixed overheads. It is sad and hope the company does great again in the near future but can see a difficult route to profitability again until the war ends. GLASH

On fuel - the ivory coast has promised 50 million litres per month (the country uses 60-70m per month) and a first tanker arrived tuesday - https://weafrica24.com/2024/01/11/fuel-crisis-in-guinea-the-government-ask/

this should help and most expect the fuel shortages to be alleviated by mid Jan

https://crisis24.garda.com/alerts/2024/01/guinea-fuel-disruptions-likely-nationwide-through-at-least-mid-january-update-3

Not sure about that!! he owns 10% of company and the company has never been valued at more than $1bn. Again I repeat 10% of company not the over 40% CIG own

All of us don't know the future and place our bets on the side we believe will come out best. If the shorters were always right then we would all be rich - just follow the shorters!! However if the shorters are right in this case the SP has still doubled from its lows - how can they have been wrong which some would believe you never happens! Irrespective of anything else if they exited at 14p and shorted again at over 40p as this approach would have made the most money so where is their expertise? the shorts are trying to mitigate their losses that's all and like us all make as much money/lose as little as possible. There is no magic wand on the future for either side and 10% shorters does not make them right - why have other companies not bought in now then? Think about all angles.