Member Info for Snapper10

I don't work in any investment type business and I am certainly not a liar
Therefore I will report your defamatory Post!!!!!!

Is the SFO the only real problem Petrofac has?
Without winning any large EPC contracts they can not survive.saying they are in the pipeline is *******s its like next week I will win Euromillions
No Dividends have been paid therefore how long will this continue?
Petrofac's biggest market in the ME and its currently closed therefore where is any recovery going to come from,$10 to $15 million contract EXTENSION awards for 3 years employs 10 to 20 people is all they are getting in there pipeline.
Takeover ? its more like liquidation they face Nobody in there right mind would touch Petrofac while still under investigation with a ex employee awaiting sentence for paying bribes on behalf of Petrofac,did he pay the bribes himself I don't think so.
Dark days ahead and not a lot of Sunshine here.

When was the large substantial EPC (Excess of $1 billion)contract awarded to Petrofac?
Joint Ventures don't count as they are usually full of double dipping and don't ever make good returns for any other than the Client.

The Double whammy is that without large EPC contracts its now got a large adverse effect on Petrofac Cash Flow
With a 1Billion EPC contract its normal to receive 10% upfront so having 3 billion pounds of EPC contracts it will boost your Cash Flow substantially
If you are not getting these awards its Petrofacs Dime your burning the news is not good I am afraid
I think its going to get a lot worse shortly not better I am afraid

Is the SFO the only Problem Petrofac has?
Without large EPC contracts they can not survive.
No Dividends paid therefore how long will this continue?
Petrofac's biggest market in the ME currently closed therefore where is any recovery going to come from?

10million dollars per year that hardly pays the Rates Bill for Aberdeen Office
Wheres the "Billion Dollar " EPC contracts thats needed to keep staff employed
I million Dollars per month onshore and offshore is employing 5 to 10 staff a month in Aberdeen

Petrofac have to share that bidding pipeline with at least on average 7 others all keen to pick up orders
In a lot of instances this is new or emerging markets for Petrofac as the ME is albeit closed due the investigation into Bribery and Corruption which according to some posters is acceptable practice in the Middle East and is therefore strange that this market takes a stance others have not.
The emerging markets are not tried and tested by Petrofac and Clients are less convinced to place orders with a market entry contractor as the risk can be considerable because of previous Experience in the inability to convince a client that you as contractor can commission what you are building for them through no past track records in this sphere.
Licensors of a Process also have a advantage Petrofac as I understand hold no specific Process Licences such as held by Technip Bechtel Fluor and a vast array of other EPC contractors again reducing your market share.
This leads to the other offering of Very Competitive Bidding again increasing the risk if you get it wrong
TBH its a pretty bleak future scenario

BECHTEL Have 21 Billion in EPC contracts
Petrofac are not even in the top 10 of EPC contractors
So the Contracts are there for everyone else to pick up except Petrofac
Its Strange that its always someone else fault with Petrofac
They can not even admit that Lufkin was a employee
Its someone else that did it
If as a company you can be seen NOT to be trusted then how do you think anyone is going to trust Petrofac with there Future projects

Companies continue to work with Petrofac because they are Cheap and doing low risk work
Where are the Large EPC contracts that will keep large numbers employed?
A 25 to 100 million contract is not large in the world of EPC
you need 1 to 3 billion contracts to stay viable where are these jobs?
Same old Same old but correct every time

how is the market to trust anything from petrofac?
They under investigation for Bribery and Corruption and Lufkin has admitted the charges and pled Guilty.
Therefore anything they announce will be taken as with a pinch of Salt until verified by independent auditors.
No client will award anything substantial until Petrofac is exonerated If not exonerated then they will have to revert to a Body Shop working on the back of a clean Contractor

The investigation is into Bribery and Corruption Its Illegal in all countries including the Middle East.
Payments are made through 3rd parties usually with reimbursement to that party via a intermediary that takes time to investigate.
Simple solution to Investigation is don't get involved in Bribery and Corruption in Petrofacs case they did and Lufkin has pled guilty to facilitating this on behalf of Petrofac.
Its not difficult to understand especially in the fact that Its Jersey registered company trading on the LSE

Innocent My ar@e
That will be for the courts decide
SFO has a long way to run yet despite Petrofacs whining and protestation

Petrofac used to have a major strength in its ability to quickly mobilise a contract workforce quickly in its ability to get Labour certified to go offshore for OIL operators worldwide.
Who in there right mind would sell off a profitable asset that gives a contractor a major advantage over competitors other than desperation for to get CASH.
Credibility is major part to win contracts and Petrofacs severely lacking in this regard.

Fire Sale
Total Desperation

Petrofac woe's are not only down to the SFO
Historical contract loses through failed contract final settlements over the last 5 years have reduced there value.
Petrofac used to have a major strength in its ability to quickly mobilise a contract workforce quickly in its ability to get Labour certified to go offshore for OIL operators worldwide.
Who in there right mind would sell off a profitable asset that gives a contractor a major advantage over competitors other than desperation for to get CASH.
Credibility is major part to win contracts and Petrofacs severely lacking in this regard.

Where do you think Lufkin got the Bribe Money?
It came out of Petrofac Its not Rocket science
Or is David Lufkin somebody who has billions to spare and that he wants to look like a super sales man he uses his own funds to pay Bribes.
People need to grow up and enter the real world !!!!
He has plead GUILTY.

This the start of the Majors stopping Petrofac Bidding work because of the corruption in the past others will follow

The goal of construction is to deliver a completed project that serves the intended function. Anything in the construction process that does not contribute to this goal is a potential obstacle and adds unnecessary risk to the project. By assessing the capability and capacity of a potential contractor through a methodical evaluation process, potential issues that could cause trouble on a project can be identified or eliminated. Comprehensive contractor evaluations conducted prior to selection can significantly reduce the risks faced by a construction project
Having The SFO all over you is not a Good Look!!!

they offered a rate away above industry norm
So simple answer greed
I should have known you don't get nothing for nothing
If its too good to be true it usually is wrong
but as I said I did not lose £550m

You are completely correct
In the role I was employed in I was responsible to deliver per the contract
I was hired because PFC had no experience of working in the UK "onshore"market or on large projects outside the ME.I did and I did not tender the work but inherited it and from the start it was not recoverable as it was Fixed Price based on a Site Preparation supplied by Client
PFC were totally struggling from the start.
The Bull**** about low productivity and bad weather and difficult location was known from tender stage
PFC got the Engineering Procurement totally wrong because they did know the UK market and therefore construction costs skyrocketed
It as simple as that
I offered a experienced opinion they chose not to listen and they PFC lost £550m
I lost time but did not lose money or reputation.