Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Melt Down Coming....Petrobust.......
Investors need to prerequisite the essentials to realise some rudimentary fundamentals for Investors encircling the Legacy work and the Performance Guarantees and Advance Payment Bonds that will all be in security or retained as existing as part of the Bonds procedure…
Explicitly around Performance Guarantees which are normally 10% of the EPC contract Value…….If evidently PFC have 3 outstanding Legacy,,,,{Best Case Scenario)…… EPC Contracts with Performance Guarantees outstanding on contracts to the primary value of around £3billion.the cost to the PFC revolving credit facility would be £300million as that’s the irrevocable bonds in place due to failure to complete the EPC contract to its required Performance capabilities contained in the EPC contract…..
If apparently PFC have more than 3 outstanding Legacy contacts then this they would be in a Agamemnon scenario…….FOR ALL…….
Furthermore the EPC clients can convert the Performance Bonds to recover liquidated damages under the contract…If the Plant constructed is not meeting its Performance requirements as stated in the EPC contract….. Liquidated damages are frequently capped at 10% of the contract value and a impact to that would result in a supplementary substantial total loss of the £300 million to PFC…..
Over the years the Legacy work PFC have had is well documented in the accounts….Its only a case of looking but the banks will also have noted this and here embodies the reason pressure is now put out on PFC by the banks of around there exposure under the Performance Guarantees and Advance Payment Bonds…….
PFC Revolving Credit facility of $550million is constrained to the bonds which are in the region of $300 to $400million giving them PFC access to working capital of $100 to $200 million in real terms…….IMHO
Source-“PFC Group…. (US$550 million new debt facilities, comprising US$500 million bridge to bond and a US$50 million term loan; and
US$180 million revolving credit facility as of 26/10/2022)”
https://www.petrofac.com/media/news/petrofac-limited-results-for-the-six-months-ended-30-june-2021/
This is to some degree will have been additional highlighted by the Auditors… “Auditors highlight that a risk level has increased…especially “Misstatement of financial information” ……..
TenneT have engaged a contract with PFC and are sedentary awaiting for PFC to put in place the required Performance Guarantees and Advance Payment Bonds for a contract?........Will TenneT delay for ever.........The Clients will go with Contractors who can Satisfy the "Contract Requirements" for Performance Guarantees and Advance Payment Bonds....... "
And in the Meantime...the clock is running......PFC are in a total INDETERMINATE STATE.......
PFC Don't have The Money........TenneT have said shows your money......... Fund The Contract......
Its not There is the Simple Answer..........
If according to PFC the Bonds sanctioned by the Banks is too the maximum $500m…….
It therefore makes a travesty of the PFC Information about $40 billion Pipelines…or Bidding Pipelines ect
PFC don’t have the existing funding to undertake or support that Volume of work…and deal with any Legacy Issues currently… IMHO
So why are they PFC Misleading Investors…Please ask yourself………
Is this a massive case of Overtrading?
Overtrading often results from businesses growing more rapidly than their production and cash flow can accommodate, or the late payment of customer invoices. If not anticipated properly, overtrading can lead to insolvency and the closure of a business.
It too explains why the Auditors…
“Auditors highlight that a risk level has increased…especially “Misstatement of financial information” ……..
Banking Facility’s currently are fully over utilised…IMHO
https://www.petrofac.com/media/news/petrofac-limited-results-for-the-six-months-ended-30-june-2021/
Explicitly around Performance Guarantees which are normally 10% of the EPC contract worth… EPC Contracts with Performance Guarantees on contracts to the principal value of around £3billion.the cost to the PFC revolving credit facility would be £300million as that’s the irrevocable bonds in place due to failure to complete the EPC contract to its obligatory Performance capabilities contained in the EPC contract…..
Therefore the highest contracts PFC could fund at any one time amounts to $5billion…..You also consider that $5billion of work is spread over 3 years approx.……..It does not leave a lot in reserve to fund Advance Payment Bonds for a contract?
Therefore it would be trustworthy to assume that PFC have facilities for $1.5billion a year in contracts….According to there current Banking Facility…..
Feel Free to Contest my Points all welcome…..
DYOR
I am Just Going Out for the Day........
But I thought i would check on your idiots to see what your Flogging in The Dead Horse Stakes........
I was down this road years ago when Blair and Brown came up with the STEPS project......The STEPS (Strategic Transfer of Estate to the Private Sector) contract is a 20-year private finance initiative deal (PFI) set up in 2001......
It was too sell Buildings off that the Tories had already sold........It went Well...Not
Onshakyground
Bonker broker....Johnny Chin chocker
What A Trio of Plonkers.......Del Boy would be Proud....... The Three Wise Plonkers.....
Selling assets already sold......next a Bring and Buy sale.......
Who appear caught in 2018 timeworp......
https://www.petrofac.com/media/news/petrofac-sells-jsd6000-project-to-zpmc/
The Grandaddy of the Trotters.......
Onsolidground
Bonker broker....Johnny Chin chocker
What A Trio of Plonkers.......Del Boy would be Proud....... The Three Wise Plonkers.....
Who appear caught in 2018 timeworp......
https://www.petrofac.com/media/news/petrofac-sells-jsd6000-project-to-zpmc/The Grandaddy of the Trotters.......
Onsolidground
Bonker broker....Johnny Chin chocker
What A Trio of Plonkers.......Del Boy would be Proud.......
Who appear caught in 2018 timeworp......
https://www.petrofac.com/media/news/petrofac-sells-jsd6000-project-to-zpmc/The Grandaddy of the Trotters.......
Bonker broker....Johnny Chin chocker
What A pair of Plonkers.......Del Boy would be Proud.......
https://www.petrofac.com/media/news/petrofac-sells-jsd6000-project-to-zpmc/
Can You Sell a Asset Twice......Petrofac Can......
https://www.petrofac.com/media/news/petrofac-sells-jsd6000-project-to-zpmc/24 April 2018
Petrofac sells JSD6000 project to ZPMC
Petrofac Limited (“Petrofac” or “the Company”) announces that Petrofac International (UAE) LLC has signed an agreement to sell the JSD6000 project to Shanghai Zhenhua Heavy Industries Co Ltd (ZPMC).
The transaction comprises the sale of all JSD6000 related assets held by Petrofac, including the owner furnished equipment, for a gross consideration of US$190 million and a 10% interest in a new special purpose vehicle set up to own the vessel once commissioned. Petrofac will provide technical support for the construction of the vessel, which is expected to complete in 2022(2). Petrofac will not contribute to the cost of construction, commissioning or testing of the vessel.
The total consideration of US$190 million is offset by a net amount of US$23 million retained by Petrofac under the previous hull and marine contract with ZPMC. The remaining US$167 million net cash consideration will be received as follows: US$92 million within 20 business days; a further US$70 million in stages as assets are physically transferred (expected to be over the period mid-2018 to early 2019); and, a final amount of US$5 million upon commissioning of the vessel. The proceeds from the sale will be used to reduce gross debt.
Petrofac’s Group Chief Executive Ayman Asfari said: “This agreement materially completes our disposal of the project, in line with our stated intention to exit the deep-water market. It is a further positive step in the execution of our stated strategy to focus on our core strengths, deliver organic growth and reduce capital intensity.”
Fraud Springs To Mind.......
By my Reckoning.... IMHO.........
PFC are in breach of there own Banking Covent....
They are committed to Contracts they can't Fund........they are under the Banking Covent required to be solvent too $75m........
But technically can not fund the required Performance Bonds and Advance Payment Guarantees required to fulfil a contract......
Lying in a RNS is not something PFC have never done before.....IMHO
Is it not Quite Simple to work out even for Idiots....
DYOR
"Sources said the key sentence in Petrofac’s 4 December statement was: “Banking and surety market appetite for the provision of these guarantees in support of the contracts won by Petrofac has reduced, resulting in delays”.
Jefferies analyst Mark Wilson told Upstream that Petrofac’s disclosure about these guarantees “is a very significant situation” and explained why.
“Petrofac’s forward revenues and cashflow come from the execution of new contracts or awards. But without the provision of performance bonds to effectively backstop or rubber stamp a contractor’s performance, that new work may be unable to move forward.”
Also significant for the broader EPC market, said Wilson, is that McDermott's recent performance bond problem appears to confirm Petrofac’s overall “reduced market appetite” comment.
Nevertheless, he said Jefferies believes “the more important criteria for the banks” is each contractor’s “balance sheet strength, execution track record and type of (performance) guarantee required”.
Explicitly around Performance Guarantees which are normally 10% of the EPC contract worth… EPC Contracts with Performance Guarantees on contracts to the principal value of around £3billion.the cost to the PFC revolving credit facility would be £300million as that’s the irrevocable bonds in place due to failure to complete the EPC contract to its obligatory Performance capabilities contained in the EPC contract…..
Therefore the highest contracts PFC could fund at any one time amounts to $5billion…..You also consider that $5billion of work is spread over 3 years approx.……..It does not leave a lot in reserve to fund Advance Payment Bonds for a contract?
Therefore it would be trustworthy to assume that PFC have facilities for $1.5billion a year in contracts….According to there current Banking Facility…..
Feel Free to Contest my Points all welcome…..
DYOR
By my Reckoning....
PFC are in breach of there own Banking Covent....
They are committed to Contracts they can't Fund........they are under the Banking Covent required to be solvent too $75m........
But technically can not fund the required Performance Bonds and Advance Payment Guarantees required to fulfil a contract......
Lying in a RNS is not something PFC have never done before.....IMHO
Is it not Quite Simple to work out even for Idiots....
DYOR
Onsolidground
DOH....... Don't you know how Banks work?.......Silly Billy
With regard to the Asset Business…
Anything with value was predisposed last Shares Dilution…
The Banks will hold anything of Significance as Security at this stage of proceedings and will not consent to their Security Position to be undermined…
Scmdcyp
Last week Predictions from the Village Idiot......
"Watch this tick up this afternoon.
Let’s keep this going hold on to your shares.
It is our turn now to turn this around.
24/25
25/27
By Friday 28p plus "
WTF.......
"ME bank funding will be an option being explored. It will not adhere to conventional Euro/US approaches. Expect something entirely different. "
It would have been the First Option PFC went too.......
Its last Chance Saloon....hence the RNS of Desperation......
DYOR
PFC Don't have The Money........TenneT have said shows your money.........
Its not There is the Answer..........
If according to PFC the Bonds sanctioned by the Banks is too the maximum $500m…….
It therefore makes a travesty of the PFC Information about $40 billion Pipelines…or Bidding Pipelines ect
PFC don’t have the existing funding to undertake or support that Volume of work…and deal with any Legacy Issues currently… IMHO
So why are they PFC Misleading Investors…Please ask yourself………
Is this a massive case of Overtrading?
Overtrading often results from businesses growing more rapidly than their production and cash flow can accommodate, or the late payment of customer invoices. If not anticipated properly, overtrading can lead to insolvency and the closure of a business.
It too explains why the Auditors…
“Auditors highlight that a risk level has increased…especially “Misstatement of financial information” ……..
Banking Facility’s currently are fully over utilised…IMHO
https://www.petrofac.com/media/news/petrofac-limited-results-for-the-six-months-ended-30-june-2021/
Explicitly around Performance Guarantees which are normally 10% of the EPC contract worth… EPC Contracts with Performance Guarantees on contracts to the principal value of around £3billion.the cost to the PFC revolving credit facility would be £300million as that’s the irrevocable bonds in place due to failure to complete the EPC contract to its obligatory Performance capabilities contained in the EPC contract…..
Therefore the highest contracts PFC could fund at any one time amounts to $5billion…..You also consider that $5billion of work is spread over 3 years approx.……..It does not leave a lot in reserve to fund Advance Payment Bonds for a contract?
Therefore it would be trustworthy to assume that PFC have facilities for $1.5billion a year in contracts….According to there current Banking Facility…..
Feel Free to Contest my Points all welcome…..
DYOR