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What PFC dont understand is they dont employ Construction Professionals with expertise.
The price work using people only experienced with Asian markets.
But Clients employ Western experience Engineers to verify what PFC have priced.
9 times out of 10 PFC have priced a EPC contract and the Clients are looking that PFC are 25percent under budget....
But PFC think they will recover losses using claims....
But because the Client is alerted to the cheap price from PFC they are combative from Day rejecting variations and claims from the start....
Hence PFC are behind the 8ball from the start.
Hence the loss making projects.....
For the really stupid...
£8.6billion or £25 a share. Dec 2012
Today £40million at 0.9p a share......
Now thats some sort of Record to be proud of.....Petrofac’s publicity-shy multi-millionaire chief executive Ayman Asfari... A financial Colossus......NOT.....
Cost LTH there savings......Thats the Sad bit.....
Https://www.thisismoney.co.uk/money/markets/article-2246062/MARKET-REPORT-Petrofac-gushes-talk-bid.html
ITS SO FUNNY THAT I HAVE HAD TO PUT ON FRESH PANTS.......
THIS IS THE BEST THAT WAS POSTED YESTERDAY
By GEOFF FOSTER FOR MAILONLINE
UPDATED: 22:25, 10 December 2012
1
View comments
Jersey-based oil services group Petrofac jumped 20p to 1706p on hopes that its days of independence are numbered.
Punters piled in amid talk that Halliburton, one of the world’s largest oilfield services companies with operations in more than 70 countries, is lining up a cash bid in the region of £8.6billion or £25 a share.
To succeed, any interested bidder would have to get the agreement of Petrofac’s publicity-shy multi-millionaire chief executive Ayman Asfari to stand any chance of success.
Cash bid: Halliburton is thought to have made an offer to buy Petrofac
Along with family interests, he owns more than 27 per cent of Petrofac and has been the driving force behind the group since flotation at 215p in 2005.
Petrofac was once an US firm but was bought out by Asfari in 2001 and listed four years later. He has turned it into one of the leading companies in its field with major construction projects in the North Sea, Oman and Saudi Arabia.
THERES STUPID........
04-Apr-24 Buy Ayman Asfari 26.38 GBX 18,955 85,038,340
18,955 WERE PART OF HIS RENUMERATION PACKAGE
THE FACT THERE NOT BUYING IS VERY RELEVANT IN THAT THEY CANT BUY OR THEY KNOW HOW ITS GOING TO END.....?
WHAT IS IT.....?
How many of these Paragraphs are in the Draft Accounts.....I Wonder.....Still to Be Published...
Misstatement of financial information as contained in Petrofac Limited results for the year ended 31 December 2022
"During the year, a review on the Thai Oil Clean Fuels contract was conducted by the Group’s Internal Audit function as part of its 2022 audit programme. This detected that indications of a material growth in the bills of quantities volumes had been identified during a periodic engineering scope review prior to the approval of the Group’s consolidated financial statements for the year ended 31 December 2021. These should have been evaluated and reflected in the 2021 financial statements. This data was identified and available to the project management team but was not shared with the E&C divisional senior management team, the Group’s Executive team nor the Group’s external auditors until after the approval of the Group’s consolidated financial statements, in contravention of the Group’s established policies and procedures. A thorough investigation concluded this reflected poor judgement rather than any intent to mislead."
Its called FRAUD.....
SM66
Did you not get your English O level?
JUST FOR YOU
Read the Key Words for the Stupid........
"Update Strategic and Financial Options As part of the Group’s ongoing financial restructuring, an ad-hoc group of senior secured noteholders have made a proposal to provide further credit to the business of up to US$300 million, comprising US$200 million of new funds and US$100 million of credit support to help secure performance guarantees for certain of its existing contracts. This non-binding proposal is dependent upon, amongst other things, the Company securing these performance guarantees", ........
"a proposal"
"non-binding proposal "
"dependent upon,"
"Company securing these performance guarantees, "
Put them all together and what has PFC got.....NOTHING.....Its A "non-binding proposal "dependent upon,"Company securing these performance guarantees, "
Its called Fine Print......
Total PETROBUST.......
Don't Forget what the Accounts say about the AVO's....
And ANY PERSON PUTTING UP A ...APB or PGB will want total Clarity on this ISSUE........
The Recognition of assessed variation orders (AVOs) pending customer approval: an AVO is a management estimate of payment due from the customer resulting from a customer-instructed change in the contractual scope of work or for the reimbursement of costs not included in the contract price. The assessment for contract modification is based on discussions with the customer and a range of factors, including contractual entitlement, prior experience of the customer and of similar contracts with other customers. When such modifications or changes to contract are approved in writing, by oral agreement or implied by customary business practices including where the parties have yet to reach final agreement on changes in scope or pricing (or both) but where the Group believes it has an enforceable right to payment, the Group recognises revenues and profit from AVOs using the expected value approach. It assesses/reassesses AVOs at contract inception and at each reporting date where it is considered highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the AVO is subsequently resolved. In performing the assessment, management considers the likelihood of any such resolution being made by reference to the contract, independent specialist advice, customer communications, past experience with the customer and other forms of documentary evidence. At of 31 December 2022, AVOs of US$378m
were recognised in the consolidated balance sheet (2021: US$338m), of which US$372m (2021: US$337m) was included within the contract assets; and US$6m (2021: US$1m) was included as an offset against contract liabilities; see note 20.
Accountan Speak............Important Bit.......
“Where AVOs pending customer approval are not subsequently resolved in the Group’s favour, this could result in reductions to, or reversals of, previously recognised revenue. The AVOs recorded in the financial statements are in respect of a number of contracts, with AVOs relating to two contracts representing approximately half of the total balance recorded. "
On paper there is a lot of Money Not Settled or approved with Clients……..At of 31 December 2022, AVOs of US$378m……Outwith Legacy Contracts
Auditors will be holding PFC Feet to the FIRE on this as this is the Basis of the BIG BLACK HOLE.........
And as the Auditors stated PFC have a History of Fraud and Bribery and Corruption do you blame the Auditors for being Diligent