Member Info for Snapper10

Bob Hope

"The simple truth is this company at this moment in time are loss making with serious cash flow problems......"

That is conservative to say the least.......PFC are burning millions on Legacy Contracts Thai Oils is over a 100 million alone.....

over the years these loses add up and the true figure is in the $1.2 billion Black Hole.......

The Scope Risk for PFC on TenneT is massive in that they PFC don't own the Key elements......

Heavy Lift -Fab Yard -Transportation Sub Contract..... A Specialist Sub Contractor will not take a High risk.....In Fact I would Imagine any sub contracts coming out from PFC the sub contractor will only accept on a Cash positive basis.......Also upfront mobilisation costs being met by PFC further impacting Cash flow at PFC is considered industry norm when dealing with PFC.....

If that Supply chain is broken due to for instance to delays such as Late Payments and a weather window is missed.......Disaster........ Liquidated Damages kick in.....

PFC have tried to manipulate the TenneT work as its biggest contract win, throwing out contract values as $13.5 billion ........

TenneT as a client is not going to rush up front EPC contract payments without guarantees from PFC on these funds......Considering the Share Price its highly unlikely TenneT are not asking very serious questions on PFC viability to deliver........

TenneT are looking at project support from the Dutch and German Governments .......

The Dutch are not going to be ecstatic about contracts going to the the Philippines and Non Dutch contractors.....

PFC have made the TenneT contract and cash as wonderful business for PFC to the markets ........

The Question is it a Reality or Utter Desperation on the part of PFC.......

The Auditors did say in the Accounts that PFC biggest risk is still "Financial Misrepresentation....

The PFC mantra of Big Bidding Pipeline of $60 Billion.......Fantastic.....Fixed price EPC contracts are extreme high risk and when they go wrong they need deep pockets to fix.........And PFC have 7 or 8 legacy contracts are Proof that have went wrong??????

Cash Flow is being sucked dry........

You don't see Oil Majors going to the wall its the Contractors that lose they lose big time........And PFC legacy contracts are proof of this......... Its PFC money sorry wrong its Shareholders money that is being burned to complete these contracts........

DYOR its all in the 2022 Accounts.....

While I await on my reply from Ernst Young and the LEEG.......

Will this share price not be causing concern with PFC Clients.......?

Do you think clients are going to release funds if they think it will disappear into a Black Hole.....?

Will we see the 20s this afternoon......

Propaganda on overdrive.........

Things must be getting desperate.....

“A framework agreement is a set of rates which will be applied to each contract, not a lump sum for the job.”

In reality it aint that simple……

Single provider framework agreements are a method of contracting a single company (or Entity} to complete works over a set period of time. The client will then ‘call off’ works each time their particular products or service are required.

Where this happens, single provider framework agreements have a set of terms and conditions which are in place for the duration of the agreement. This means that every time there is a call off under the agreement the products/services are delivered to the same rules.or "Fixed Price"

Simply put; Single Provider Framework agreements happen when a single company is contracted to provide set outcomes for a set duration.

Framework agreements are governed by The Public Contract Regulations (2015) and these set out how contracts are managed. These are the rules for what you and your client need to do throughout the duration of the works you are contracted for.

When you win a framework agreement, you agree with the Client the terms (Rates)also Risk for all contracted works within the length of the framework:

• You agree as part of your tender the price you will charge for services/products delivered

• You agree the minimum standard of works you will deliver e.g. product quality, level of service etc.

Additionally, on a single provider framework agreement there are two rules you must obey:

1. You can only be awarded work that comes under the agreement you originally tendered for.

2. Your client can ask you to provide more information if they want to before they give you any work.

The maximum framework agreement term is 4 years and is set by the Public Contracts Regulations (2015) document. However, your client may choose to set a shorter duration for your framework agreement.

There are a number of reasons this might happen:

• The client does not expect the works will take 4 years to complete.

• The service is not required for the entire 4 years maximum duration.

• The client wants to be able to assess your ability to complete the works and be able to change suppliers

Client Fixes the Rates and Scope..........

Emerald Calamities

Last week I was on Benefits with and Ar@e was hanging out my pants....I was sacked from PFC......Make up your Mind.....Are PFC now employing Children.......????

LSE have my profile and my correct Name....I have nothing to fear.....

PFC were the ones who were fined for bribery and corruption......Not Me......

Plonkerchops

Thats the problem when you edit(Private Bits) and cut and paste...........

Don't worry EY and LSEG will understand.....

Filter and Ignore and the Share price will rise follow the mantra you know it makes sense........

Emerald Calamities

Your Opinion is not My Opinion......

One is Wrong.......Both can't be right......IMHO I am right........

But you have more Posts than me so you must be right.......LOL

Look at the PFC Share Price.......Smell the Coffee.........

Petrofac Limited ( PFC) Petrofac Limited: PETROFAC AND HITACHI ENERGY SECURE FRAMEWORK WORTH APPROXIMATELY 13 BILLION EUROS 30-March-2023 / 07:00 GMT/BST2

Yahoo

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Sent

Plonkerchips



To:
gds.ukap@xe02.ey.com






Fri 24 Nov at 12:09





gds.ukap@xe02.ey.com


As the Auditor of Petrofac do you have any responsibility in the release of information to the stock market.
The RNS released on the 30th of March is surely misleading.
It appears that PFC refers to winning a 13 Billion Euro Framework agreement.
What is contained in the RNS is the “split approximately equally between Petrofac’s and Hitachi Energy’s scopes”…….
The Scope of PFC element could be anything it may be £50 million pounds…….
What is the Partnership Split? 
My Interpretation could Be…….
Hitachi Energy is supplying the High Value Kit? Therefore is the contract say on a proportion of say a £1billion value split £650m to Hitachi Energy and £350 m PFC.......????? 

Is this a correct assumption or is it in anyway misleading investors,,,,,,,,

I will enlighten you of there response........

Plonkerchops

THE RNS States......

"Petrofac and Hitachi Energy have been awarded a multi-year Framework Agreement by TenneT as it works to expand offshore wind capacity in the Dutch-German North Sea The Framework Agreement, which represents the largest in Petrofac’s history, covers six projects. Each project comprises the EPCI of an offshore HVDC transmission station, onshore converter station and associated infrastructure Each project will be executed under a standalone contract valued at over 2 billion euros, split approximately equally between Petrofac’s and Hitachi Energy’s scopes. The first of these contracts has been awarded alongside the Framework “

I quote the RNS its Miss leading......Do you Speak for PFC ?

Emerald Calamitys

https://uk.search.yahoo.com/search?p=Auditors+Duty+of+Care&fr=yfp-t&fr2=p%3Afp%2Cm%3Asb&ei=UTF-8&fp=1

As the result of a judgment in the Scottish Court of Session, ICAEW took the advice of Leading Counsel and issued guidance which recommended that auditors who wish to manage the risk of liability to third parties use wording expressing clearly to whom they owe a duty of care (a ‘disclaimer’).

RNS response I await Ernst Young

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Tel: 44 (0)20 7797 4400

Brookkers.

Thank you.....

The Scope Risk for PFC is massive in that they don't own the Key elements......

Heavy Lift -Fab Yard -Transportation Sub Contract.....If Fixed Price its okay but highly Unlikely any Specialist Sub Contractor would take a High risk.....

If the Supply chain is broken due to for instance delays such as Late Payments and a weather window is missed.......Disaster........

PFC are not good when weather is discussed........

Emerald Calamitys

And you just have 66 posts, right?

Brookkers.... good question let me elaborate

"split approximately equally between Petrofac’s and Hitachi Energy’s scopes. "

The Key is "Scope"

A Scope of work has a value attributed to it depending what the work is...........

It could mean that PFC have a work scope with a monetary value of £!.2 billion ....... leaving HE with 800 million........

It just as easy could mean that PFC have a work scope with a monetary value of 300 million ....... leaving HE with 1700 million........

It is Misleading but it affects any Advance Payment a company would receive impacting Cash Flow.....and its turnover also if in that "work scope " there was Profit or High Risk.......

If one partner is only supplying Propriety Equipment he can control his manufacturing cost....and is Low Risk.....

If on the other hand your Work scope contained a element that was weather or Seasonal dependent that would be considered High Risk......

IMHO the value for PFC is High Risk and significantly less than 50% of the contract value.......

Its open to Question so therefore would be considered "Miss Representation" or Ambiguous ...........Which has a impact for any investor..........

I have also raised the same Question with thePFC auditors Ernst Young

"It appears that PFC refer to winning a 13 Billion Euro Framework agreement.

What is contained in the RNS is the “split approximately equally between Petrofac’s and Hitachi Energy’s scopes”…….

The Scope of PFC element could be anything it may be £50 million pounds…….

Is this correct"

I also await there Response......

For that reason I have questioned the RNS of theThe RNS released on the 30th of March is surely misleading.By contacting the RNS provider at the LSEG today......

"It appears that PFC refer to winning a 13 Billion Euro Framework agreement.

What is contained in the RNS is the “split approximately equally between Petrofac’s and Hitachi Energy’s scopes”…….

The Scope of PFC element could be anything it may be £50 million pounds…….

Is this correct"

“Petrofac Limited ( PFC) Petrofac Limited: PETROFAC AND HITACHI ENERGY SECURE FRAMEWORK WORTH APPROXIMATELY 13 BILLION EUROS 30-March-2023 / 07:00 GMT/BST

________________________________________

Press Release

30 March 2023

PETROFAC AND HITACHI ENERGY SECURE LANDMARK OFFSHORE WIND FRAMEWORK WORTH APPROXIMATELY 13 BILLION EUROS

Petrofac and Hitachi Energy have been awarded a multi-year Framework Agreement by TenneT as it works to expand offshore wind capacity in the Dutch-German North Sea The Framework Agreement, which represents the largest in Petrofac’s history, covers six projects. Each project comprises the EPCI of an offshore HVDC transmission station, onshore converter station and associated infrastructure Each project will be executed under a standalone contract valued at over 2 billion euros, split approximately equally between Petrofac’s and Hitachi Energy’s scopes. The first of these contracts has been awarded alongside the Framework “

I await a response

Please read PFC published Accounts carefully......ignore the upfront flannel.....

Read the notes referred to within the accounts......every thing is there including the auditors warnings.........

It's not a consideration if you like or disagree with a person's views.....

It's in the accounts and it's for all to see......