Member Info for Slift

Dickbatty,

I'll invest when I want to old man. I currently see much better opportunities elsewhere.
I don't need you to tell me when to invest and when not to haha, even if you have 10 different trading accounts and are a "sophisticated investor trader" lmao.

bigsmoke,

Sure, there may be a breakout.
However, I'm not willing to risk on a basket case. I don't see future growth or value here on the long term.
And I will certainly not take a risk for the short term lol.

Btw, has it been a week yet? lol

No, not really.

Although my estimates suggest watercut is 28-30+% currently.

From HUR's RNS:

"This proposed side-track is more complex in nature than previous wells on Lancaster due to the incorporation of an intelligent completion and the challenges of delivering the well trajectory from the side-track location. As a result, the Company has concluded that it will not be possible to drill this well during the 2021 summer weather window without unacceptable operational and cost risk.

All options for potential further development activity are subject to factors which are or may be outside the Company's control which include field performance, prevailing oil prices and support from relevant stakeholders and counterparties."

Lol.. apparently everything is out of their control, including field performance..
Why are the BOD getting paid thousands of shareholders money? Might aswell just run the company without a BOD.

Lol...
I think the supermajors wrote off 15-30b+ 2020 half year alone.

I don't think they need $300m tax losses lol

https://www.reuters.com/article/us-shell-results-idUKKCN24V0T1
https://www.reuters.com/article/us-bp-writeoffs-idUSKBN23M0QA
https://www.theguardian.com/business/2020/aug/14/seven-top-oil-firms-downgrade-assets-by-87bn-in-nine-months

I thought HMI already had the green economy mark..?

JonnyTwoToes,

I think you're underestimating how much cash an oil SUPERMAJOR has.
c. £900m over 7 years isn't much for BP.
Development of the wind farms will cost billions.
I think BP need a lot more investment in green so they can offset CO2 production from O&G by 2030, in line with gov guidelines.

It's all for PR though, as margins in green energy suck. BP will still stick to O&G and develop their North Sea fields at the same time.

"I’m sure I don’t need to piece this together for you but a company such as BP, doing all they can PR wise to please the next gen enviro issues will not touch PFC with a massive elongated barge pole!
PFC will mop up contracts after the SFO and I envisage a £6 share price being optimum within 3 years."

Funny you should say this though. Just last week Petrofac won the commercial project of the year award in Oman for developing the Ghazeer field.
If you didn't know, BP is the operator and major stakeholder of Ghazeer, with 60% stake.
I think PFC will have ongoing O&M contracts here for a few years, and i'm sure Petrofac will be target for BP for further contracts in Oman following the great success of Ghazeer.

"SFO will take with their investment"
investigation*

JonnyTwoToes,

Ofcourse. There's always an element of risk to every investment.
If 78p is your entry for that risk, then that's you.

However, I believe £330m market cap for this company is significantly undervalued considering Petrofac are a global business that is very profitable, even at low margins. Being based in Jersey, Petrofac pay 0% taxes, so majority of profits are reinvested.

I can see the hesitation of investment here because of SFO involvement, but as it stands - the company and share price performance is more focused on other things such as debt refinance, backlog, big orders/awards, suspensions being lifted etc. that have immediate or near term impact.

No-one knows how long SFO will take with their investment, but as I posted the other day, Petrofac are not COMPELLED to provide SFO with ANY accounts or other documents in relationship to the bribe counts by David Lufkin.
David Lufkin was the former Global Head of Sales for Petrofac International Limited.
Petrofac International Limited is a subsidiary of Petrofac Ltd, both being based in Jersey.

I'm not going to be naive and say that Petrofac will be let off without a fine, but even with a moderate fine, Petrofac should be able to withstand and recover at the moment.
The ADNOC suspension should also be lifted relatively soon (or that is the consensus), hopefully in 2021.
There will also be significant amounts of investment in O&G after the current downturn, so I'm hopeful of the future for Petrofac.

Good luck to you, whether at RR or your re-entry at 78p here.

"But don’t eclecticism any bidding opportunity until the trace of money paid in bribes is sourced."

Actually JonnyTwoToes, S&P have recently based their rating on Petrofac securing $2-2.5b of new orders in 2021, even after ADNOC suspension.
This will allow Backlog to grow by YE 2021 by $0-0.5b.

I think i'll trust S&P's research before the nonsense you type without having done any research.

I may take your comments into consideration if they had any substance behind them, but they don't. Sorry mate.

"A far superior credit rating than RR no less."

LOL. It actually is aswell.
RR long term debt rating at BB-
Petrofac long term debt rating at BB+

2 ratings higher.

"LONDON (S&P Global Ratings) March 29, 2021--S&P Global Ratings said today that it lowered its long-term issuer credit rating on Petrofac Ltd. to 'B+' from 'BB+' and placed the rating on CreditWatch with developing implications. At the same time, we withdrew the rating at the company's request, after it confirmed it no longer had outstanding public debt."

Interesting development.
"no longer had outstanding public debt".

Maybe the results won't be so bad after all.
All depends on how much of the long term debt that Petrofac has refinanced.

GLA.

Yes, I do hope you miss the boat on this one.

Afterall, you're "heavily" invested in better opportunities elsewhere, like BP and RR.

Do you know how to use a comma though?

Dickbat,

Aren't you the one using CFDs and leverage??
Keep on spreadbetting old man.

"Oh how the rich just keep getting richer and the poor keep getting poorer."
LOL
Don't you have like £1000 invested in HUR? :')

Kammi is clueless.

Also, from SFO:
"The SFO is a specialist prosecuting authority tackling the top level of serious or complex fraud, bribery and corruption.

We are part of the UK criminal justice system covering England, Wales and Northern Ireland, but not Scotland, the Isle of Man or the Channel Islands."

Jersey is part of the Channel Islands.

It's actually very interesting how this will play out for PFC lol.
Basically PFC can refuse to hand over any documents (e.g. the unanimous decision made by the Court in KBR's case - "The SFO cannot compel a foreign company to produce documents it holds outside the UK")

Also, from the Annual Report 2019:

"The UK Companies Act 2006 sets out a number of general duties to which all directors are expected to adhere and while Petrofac, as a Jersey-registered entity, is not required to comply with this legislation, our Directors are informed by UK practice and wish to act in good faith to promote the long-term success of the Group."

"Petrofac Limited (the “Company”) is a limited liability company registered and domiciled in Jersey under the Companies (Jersey) Law 1991 and is the holding company for the international group of Petrofac subsidiaries."

"it makes a full prosecution of PFC highly improbable as all of the bribes were in foreign jurisdictions!"

What's also interesting is that Petrofac is actually registered overseas (similar to KBR), in Jersey.
Whilst Jersey is a Crown dependency, it is not part of the UK and not represented by Houses of Parliament.
Jersey therefore have their own "directly elected legislative assemblies, administrative, fiscal and legal systems and their own courts of law."

However, it's a little bit more complicated with Jersey. I think in some cases, Jersey can provide consent (or UK can consult Jersey) regarding obligations in international law.

Will be interesting if PFC follow the same route as KBR. Will be another big blow to SFO (though they have already charged Lufkin).