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Petrofac Limited (PFC)

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Bouleversee
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Re: Petrofac Limited (PFC)

#453326

Postby Bouleversee » October 26th, 2021, 7:25 pm

Clitheroekid wrote:
Bouleversee wrote:Was the fine more than PFC had allowed for initially?

What are other holders intending to do about this offer?

I don't know what provision PFC had made for the fine, but it was less than I'd expected, and that seems to have been the general consensus.

Having thought long and hard I've decided to accept the risk and take up the offer. From what I've gleaned about PFC they are in technical terms very well thought of, and I'm sure there's a lot of sympathy for them in the markets they service - after all, they simply got caught doing what their rivals have been doing for decades and almost certainly still are doing. I suspect that most people involved in that end of the industry aren't particularly bothered about ethical issues - they just want a company that can do the work competently and competitively, and PFC seem to fulfil those criteria.

I was also reinforced in my decision by this snippet from the Proactive Investor site - https://www.proactiveinvestors.co.uk/co ... 64296.html

I may be proved wrong, and live to regret it, but it's not going to ruin my life even if I am wrong. I'd already written my PFC shares down to well under £1 each, so in effect that's my new starting point and the only way is up! ;)


Thanks, ck. Let's hope you are right.

monabri
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Re: Petrofac Limited (PFC)

#453336

Postby monabri » October 26th, 2021, 7:58 pm

Bouleversee wrote:Was the fine more than PFC had allowed for initially?

What are other holders intending to do about this offer? I already have a large (for me) holding in PFC, having topped up previously, and, although I haven't done the sums yet, I don't think I dare risk any more, especially as one of my other major holdings (FSJ, also in marine services) has just done a massive nosedive. They will also probably want more money. I hate dilution, however.


Earlier in this thread there was a mention of £400m fine in the press.

viewtopic.php?p=200521#p200521

I made a comment on an even bigger fine being suggested !

viewtopic.php?p=269765#p269765

Bouleversee
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Re: Petrofac Limited (PFC)

#453350

Postby Bouleversee » October 26th, 2021, 8:24 pm

Yes, I had it in my mind that they had reserved for a fine higher than the actual figure some years ago so I was rather surprised by this raise exercise.

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Re: Petrofac Limited (PFC)

#453676

Postby Bouleversee » October 27th, 2021, 6:05 pm

https://www.petrofac.com/media/news/pet ... pc-project

So that's why PFC's sp went down over 3% today! :roll:

monabri
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Re: Petrofac Limited (PFC)

#453684

Postby monabri » October 27th, 2021, 6:37 pm

Bouleversee wrote:https://www.petrofac.com/media/news/petrofac-secures-lithuanian-refinery-epc-project/?utm_source=news-alert&utm_medium=email&utm_campaign=news&utm_content=petrofac-secures-lithuanian-refinery-epc-project

So that's why PFC's sp went down over 3% today! :roll:


Yes, biggish contract win, sp down... :roll:

(I think with PFC, we might need to stock up on the :roll: smilies)

Bouleversee
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Re: Petrofac Limited (PFC)

#453691

Postby Bouleversee » October 27th, 2021, 6:56 pm

:D :) :lol:

Alaric
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Re: Petrofac Limited (PFC)

#453809

Postby Alaric » October 28th, 2021, 10:38 am

Bouleversee wrote:What are other holders intending to do about this offer? I already have a large (for me) holding in PFC, having topped up previously, and, although I haven't done the sums yet, I don't think I dare risk any more, especially as one of my other major holdings (FSJ, also in marine services) has just done a massive nosedive. They will also probably want more money. I hate dilution, however.


It's not immediate, as the fund raising has to get past an EGM first.

There are three motions
AUTHORISE ISSUE OF EQUITY TO AYMAN ASFARI AND FAMILY
APPROVE ISSUANCE OF SHARES TO SCHRODERS PURSUANT TO THE CAPITAL RAISING
AUTHORISE ISSUE OF EQUITY IN CONNECTION WITH THE CAPITAL RAISING AND DIRECTOR SUBSCRIPTIONS

monabri
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Re: Petrofac Limited (PFC)

#453867

Postby monabri » October 28th, 2021, 1:56 pm

https://www.offshorewind.biz/2021/10/28 ... -industry/

"Former Petrofac CEO Ayman Asfari and colleagues have established Venterra Group Plc, a company providing services to the offshore wind industry, which acquired FoundOcean, Osbit, and Gavin & Doherty Geosolutions (GDG)."

Bouleversee
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Re: Petrofac Limited (PFC)

#453904

Postby Bouleversee » October 28th, 2021, 4:13 pm

So in the same line of business as PFC? Sounds as though he plans to take it over for peanuts. I really don't see why he should get any more rights under the offer than any other shareholder, do you? This Grandma Doris is bewildered by it all and has come to the conclusion that equity investment is a mug's game. Why shouldn't the directors and ex-directors in charge at the time be paying the fine rather than us? Feel free to persuade me I'm wrong but have a look at events at James Fisher and Sons (FSJ), another company in which my family are losing a packet, before answering.

monabri
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Re: Petrofac Limited (PFC)

#453930

Postby monabri » October 28th, 2021, 5:53 pm

Bouleversee wrote:So in the same line of business as PFC? Sounds as though he plans to take it over for peanuts. I really don't see why he should get any more rights under the offer than any other shareholder, do you? This Grandma Doris is bewildered by it all and has come to the conclusion that equity investment is a mug's game. Why shouldn't the directors and ex-directors in charge at the time be paying the fine rather than us? Feel free to persuade me I'm wrong but have a look at events at James Fisher and Sons (FSJ), another company in which my family are losing a packet, before answering.


He already personally owns 19.3% of PFC, and maybe he has been "topping up" with just that in mind at these nice cheap prices! I don't know if the rest of the family have been topping up but the PDMRs have been buying in small chunks. Just think how much his portfolio value has decreased over the last few years, probably in the range from $900m to $90m... So, to an extent he has paid for the mistakes made under his watch.

All data from Simply Wall Street

https://simplywall.st/stocks/gb/energy/ ... #ownership



I see that the Norges bank :mrgreen: (Mr Green) also has a nibble...

Note Schroder Investment Mgr Ltd have also ramped up their ownership recenty.

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Re: Petrofac Limited (PFC)

#453939

Postby Bouleversee » October 28th, 2021, 6:14 pm

monabri wrote:
Bouleversee wrote:So in the same line of business as PFC? Sounds as though he plans to take it over for peanuts. I really don't see why he should get any more rights under the offer than any other shareholder, do you? This Grandma Doris is bewildered by it all and has come to the conclusion that equity investment is a mug's game. Why shouldn't the directors and ex-directors in charge at the time be paying the fine rather than us? Feel free to persuade me I'm wrong but have a look at events at James Fisher and Sons (FSJ), another company in which my family are losing a packet, before answering.


He already personally owns 19.3% of PFC, and maybe he has been "topping up" with just that in mind at these nice cheap prices! I don't know if the rest of the family have been topping up but the PDMRs have been buying in small chunks. Just think how much his portfolio value has decreased over the last few years, probably in the range from $900m to $90m... So, to an extent he has paid for the mistakes made under his watch.

All data from Simply Wall Street

https://simplywall.st/stocks/gb/energy/ ... #ownership



I see that the Norges bank :mrgreen: (Mr Green) also has a nibble...

Note Schroder Investment Mgr Ltd have also ramped up their ownership recenty.


He hasn't lost anything yet (and neither have we); our losses are only on paper. However, if we don't take up our entitlement and allow ourselves to be diluted and then the share price recovers and if others have bigger entitlement pro rata than we do, then we have lost.

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Re: Petrofac Limited (PFC)

#454790

Postby daveh » November 1st, 2021, 12:17 pm

Pricing of new debt
https://www.investegate.co.uk/petrofac- ... 0006EUFFM/

Announcement of the Pricing of US$600,000,000 Aggregate Principal Amount of Senior Secured Notes Due 2026

Petrofac Limited (the "Company" or "Petrofac") today announces the successful pricing of its offering of US$600,000,000 aggregate principal amount of 9.75% senior secured notes due 2026 (the "Temporary Notes") by a newly-formed financing entity, Pyrenees Bondco Limited (the "Issuer"). The offering of the Temporary Notes is subject to customary closing conditions, and settlement is expected to occur on or around 9 November 2021.

Bouleversee
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Re: Petrofac Limited (PFC)

#455308

Postby Bouleversee » November 3rd, 2021, 12:26 pm

Alaric wrote:
Bouleversee wrote:What are other holders intending to do about this offer? I already have a large (for me) holding in PFC, having topped up previously, and, although I haven't done the sums yet, I don't think I dare risk any more, especially as one of my other major holdings (FSJ, also in marine services) has just done a massive nosedive. They will also probably want more money. I hate dilution, however.


It's not immediate, as the fund raising has to get past an EGM first.

There are three motions
AUTHORISE ISSUE OF EQUITY TO AYMAN ASFARI AND FAMILY
APPROVE ISSUANCE OF SHARES TO SCHRODERS PURSUANT TO THE CAPITAL RAISING
AUTHORISE ISSUE OF EQUITY IN CONNECTION WITH THE CAPITAL RAISING AND DIRECTOR SUBSCRIPTIONS


Where can I find details of what the above issues consist of, particularly Asfari's? I had a look at PFC's website but couldn't find them.

I see the share price has gone down further; not much of a discount now. I am having second thoughts as to whether to take up the offer on my 2 holdings on which I am losing quite a lot. I haven't seen any discussion/advice in the press on this. Does anybody here bother to vote at the EGM?

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Re: Petrofac Limited (PFC)

#455387

Postby daveh » November 3rd, 2021, 6:44 pm

I may have misread it, but as Asfari holding is so large the shareholders need to give permission for him to take up the open offer. My reading is that he will be paying for the shares. It is good that he is going to take up the offer.

My plan is that I will take up the offer as, unlike a rights issue, the right to buy shares in the open offer has no value if you allow them to lapse, and at the moment the open offer shares still stand at a discount, though that discount was closing today. However, as there is no dividend until 2023 at the earliest, I am likely to look to sell fairly soon.

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Re: Petrofac Limited (PFC)

#455713

Postby Bouleversee » November 4th, 2021, 8:07 pm

I see they are down a bit more today. One would expect them to stick or go up at this stage if all the big holders are subscribing to the offer. I am surprised at the lack of comment from the "experts".

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Re: Petrofac Limited (PFC)

#456222

Postby Bouleversee » November 7th, 2021, 11:55 am

Has anyone seen anything in the press this weekend about the offer? I understand the FT had PFC down as a sell last weekend but there's precious little value left in my holdings whereas if the price doesn't go down beyond this level I should make a reasonable amount on the discount, though it remains to be seen what happens to the price after the offer takes effect. If I don't hear anything to change my mind, I shall be taking up the offer this evening.

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Re: Petrofac Limited (PFC)

#456450

Postby daveh » November 8th, 2021, 8:52 am

A small contract win:
https://www.investegate.co.uk/petrofac- ... 0007EYHBB/

Petrofac has been awarded with a new contract worth around MYR399 million (approx US$96 million) by PETRONAS Carigali Sdn. Bhd., a subsidiary of PETRONAS, the Malaysian National Oil Company. The Engineering, Procurement, Construction, and Commissioning (EPCC) scope of work will encompass the delivery of the new Bintulu Additional Gas Sales Facilities 2 (BAGSF-2) plant located onshore at Tanjung Kidurong, Bintulu, in the Malaysian state of Sarawak.

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Re: Petrofac Limited (PFC)

#456529

Postby BristolDave » November 8th, 2021, 1:29 pm

Hello Bouleversee

All I can say and not by way of recommendation is that I have personally taken up the offer. My view on this was that not taking up the offer would lead to a higher degree of dilution than was acceptable to me.

I notice that they have just won another contract so hopefully now the corruption investigation and fine is behind them they can turn things around. The share price seems to be holding up and hasn't dropped to the offer price of 115p which in my experience is often what happens. However, we will see where it is on the 15th of the month when the new shares are issued.

David

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Re: Petrofac Limited (PFC)

#456535

Postby Bouleversee » November 8th, 2021, 1:40 pm

Dave: My sprogs and I all took up the offer last night. So far, so good. The contract was good news. Fingers crossed!

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Re: Petrofac Limited (PFC)

#456950

Postby Clitheroekid » November 9th, 2021, 11:19 pm

A fairly positive write-up from Edmond Jackson, a commentator whose views I respect - https://www.ii.co.uk/analysis-commentar ... 91121%20(1)


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