The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
"Banking and surety market appetite for the provision of these guarantees in support of the contracts won by Petrofac has reduced, resulting in delays in their provision."
The banks have lost interest.
Stalin - you said excellent RNS, what u smoking???!!!
The full year free cash flow guidance1 provided with our interim results was based, in part, on unwinding historical working capital and collecting advance payments on the new contracts secured in 2023. While the Group has made progress in reaching contractual settlements and unwinding working capital, given delays in securing advance payment guarantees, it no longer expects to receive these advances before the year-end. Consequently, it no longer expects to meet the guidance previously provided for full year cash flow.
About the worst possible news they could've given
Https://www.energyvoice.com/oilandgas/542583/petrofac-share-price/
I've read this article by quickly taking screenshots before the paywall pop up appears. For me doesn't look good for PFC.
Explains the balance sheet problems and the lack of love banks have for the oil and gas sector at the moment.
Also says the petrofac board declined to comment on the recent share price movement.
Analyst from hargreaves lansdown says that petrofac have always been a heavily shorted company so can't fully blame them for the recent downfall. Investors have just plain lost confidence in PFC.
Neil777 - like you said mate the shorters are just doing what shorters do, take advantage when there is uncertainty. I'm not worried one bit. The silence from the BOD is golden for me. They know there is nothing to say that's why they're not saying anything.
Https://www.shorttracker.co.uk/company/GB00B0H2K534/
Astaris have reduced but a few others increased. My bet is they will take this down further tomorrow but i am very confident this will recover to at least 40p before the trading update.