Proactiveinvestors United Kingdom Petrofac Limited Proactiveinvestors United Kingdom Petrofac Limited RSS feed en Mon, 22 Jul 2019 14:57:39 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 22 Jul 2019 14:30:20 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 03 Jul 2019 15:48:30 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 02 Jul 2019 12:07:02 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 28 Jun 2019 10:15:43 +0100 <![CDATA[RNS press release - Report on Payments to Governments ]]> Fri, 28 Jun 2019 09:56:26 +0100 <![CDATA[News - Petrofac shares lower despite ‘in line’ trading ahead of interims ]]> Petrofac Limited (LON:PFC) has told investors it is trading in line with its prior guidance as it released a trading update for the six months set to end on 30 June.

The engineering and oil services group is due to release its interim results on 28 August and this morning it noted some US$1.7bn of new order intake.

READ: Tuesday’s stock market movers report

"We continue to maintain excellent client relationships in all of our markets, although new order intake in the year to date reflects our recent challenges in Saudi Arabia and Iraq,” said chief executive Ayman Asfari.

“Looking forward, the group has a busy tendering pipeline in other markets with around US$15 billion of bid opportunities due for award in the second half of the year.”

He added: "We are making good progress delivering our strategic objectives.

“We continue to target best-in-class delivery for our clients and are improving our competitiveness by reducing costs, driving digitalisation, increasing local content and investing in talent. 

“Furthermore, we are well positioned in the second half with good revenue visibility, a strong balance sheet and high levels of tendering activity."

Petrofac shares were down 23p or 5.3% in morning trading, changing hands at 410.5p each.

Tue, 25 Jun 2019 09:51:00 +0100
<![CDATA[RNS press release - Trading update ]]> Tue, 25 Jun 2019 07:00:12 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 30 May 2019 11:33:08 +0100 <![CDATA[RNS press release - Directorate Change ]]> Fri, 03 May 2019 14:21:20 +0100 <![CDATA[RNS press release - Result of AGM ]]> Fri, 03 May 2019 14:18:12 +0100 <![CDATA[RNS press release - Final Dividend Exchange Rate ]]> Wed, 01 May 2019 14:58:52 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 05 Apr 2019 15:59:37 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 02 Apr 2019 15:35:52 +0100 <![CDATA[RNS press release - Annual Financial Report ]]> Mon, 01 Apr 2019 10:38:09 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 26 Mar 2019 10:41:40 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 20 Mar 2019 16:26:37 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 19 Mar 2019 08:58:43 +0000 <![CDATA[News - Petrofac awarded contract worth around US$1bn for the Ain Tsila Development Project in Algeria ]]> Petrofac PLC (LON:PFC) saw its shares rise on Wednesday afternoon after the oil services group said it has been awarded a contract worth around US$1bn with Groupment Isarene, the joint operating group set up by Sonatrach, Petroceltic and Enel, for the Ain Tsila Development Project in Algeria.

The FTSE 250-listed firm pointed out that the Ain Tsila field, which is located around 1,100 kilometres south-east of Algiers, will produce gas, LPG and condensate for the local Algerian market and for export.

READ: Petrofac shares lower as revenue drops

It said, under the terms of the 42-month contract, the lump-sum engineering, procurement and construction (EPC) project scope of work includes commissioning, start-up and performance testing.

Petrofac's EPC activities in Algeria include Sonatrach's Tinrhert Field Development Project, along with the Alrar and Reggane projects that commenced production last year.

E S Sathyanarayanan, Petrofac’s group managing director, Engineering & Construction, commented: "This award builds on Petrofac's significant track record in Algeria where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability.”

In late afternoon trading, Petrofac shares were 2.9% higher at 479.10p.

Wed, 13 Mar 2019 15:35:00 +0000
<![CDATA[RNS press release - Petrofac awarded US$1bn EPC project in Algeria ]]> Wed, 13 Mar 2019 15:01:47 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 07 Mar 2019 13:51:40 +0000 <![CDATA[News - Petrofac shares lower as revenue drops ]]> Petrofac Limited (LON:PFC) shares traded lower in Thursday’s early deals as the oil services firm’s financial results confirmed a drop in revenues and business profits.

Revenue for 2018 was reported at US$5.82bn, down from US$6.39bn, while net profit came in at US$64mln - with a US$353mln business performance offsetting a US$289bn negative impact of exceptional items.

The ‘business performance’ for 2018 at US$353mln represents a 2% decline from the US$361mln tally in the preceding year, but, smaller exceptional impacts meant that Petrofac could report the positive net profit versus the US$29mln loss for 2017.

Petrofac highlighted some US$5bn of new order intake and a US$9.6bn order backlog as of December 31.

READ: JP Morgan downgrades Petrofac as shareholders band together

"Petrofac has reported good results that reflect solid execution and excellent progress delivering our strategy,” said Ayman Asfari, Petrofac chief executive.

Asfari added: "Looking forward, we are well-positioned for 2019 with good revenue visibility.

“Whilst we have a busy tendering pipeline and are well-placed on a number of bids, there is a higher degree of uncertainty in the level of awards in the near-term. We are nevertheless targeting a book to build of greater than one.”

The company announced a 38p per share full-year dividend.

Nicholas Hyett, analyst at Hargreaves Lansdown, in a note, described the financial results as a slide show whilst highlighting the Serious Fraud Office (SFO) investigation rumbles on.

Hyett said: “Full-year numbers are really a slideshow at the moment – and it’s not often you say that.

“The far more pressing issue is the SFO investigation into alleged bribery and corruption, and the effect that might be having on Petrofac’s ability to win new business.

“To be fair the order-book’s been shrinking for years, but we worry that as the SFO investigation gets closer to home, potential partners will become ever more cautious.

“We worry things could still get worse before they get better – one former employee has confessed to eleven bribery charges, but none of them are related to the Kazakhstan operations that originally sparked the SFO investigation.

“It’s worth noting that Petrofac hasn’t been charged with any offences, but that doesn’t mean the investigation isn’t already doing damage.”  

Thu, 28 Feb 2019 09:32:00 +0000
<![CDATA[RNS press release - Results for the year ended 31 December 2018 ]]> Thu, 28 Feb 2019 07:00:27 +0000 <![CDATA[News - JP Morgan downgrades Petrofac as shareholders band together to launch £400mln legal claim ]]> A group of disgruntled Petrofac Limited (LON:PFC) shareholders are suing the scandal-hit oil services provider for more than £400mln.

Last week, Petrofac’s former global head of sales, David Lufkin, admitted to offering bribes in an attempt to secure contracts worth over US$4bn in Iraq and Saudi Arabia.

READ: SFO launches Petrofac investigation

Litigation funder Innsworth and law firm Keystone have today confirmed they are putting together a group of shareholders, including major UK and US pension funds, in order to take action against Petrofac.

They are looking to sue Petrofac and its board in a bid to recoup some of the “substantial losses” they claim to have suffered as a result of the firm’s alleged involvement in bribery, corruption and money laundering.

They also allege that Petrofac compounded the issue by publishing “false and misleading statements” and failing to disclose "material information regarding [its] compliance and corporate governance policies and business performance and prospects”.

Innsworth, which is funded by Elliott, is engaging investors who held shares from 2010.

The SFO opened its initial investigation into Petrofac almost two years ago which led to more than £1bn being wiped from the company’s value almost overnight.

Its share price, which was above 900p before news of the investigation broke, immediately collapsed to below 400p, where it still finds itself today.

Petrofac pleads innocence

Petrofac’s stock was again hit when Lufkin admitted charges at Westminster Magistrates’ Court last week, tumbling by more than a quarter.

Rene Medori, chairman of Petrofac, said at the time: “The SFO has chosen to bring charges against a former employee of a subsidiary company.

“It has deliberately not chosen to charge any group company or any other officer or employee. In the absence of any charge or credible evidence, Petrofac intends as a matter of policy to stand by its employees.

“Petrofac has policies and procedures in place designed to ensure that we operate at the highest levels of compliance and ethics.”

JP Morgan in need of more reassurance

Despite the protestations of innocence, JP Morgan Cazenove has taken a “more cautious stance” and has downgraded Petrofac to ‘neutral’ and slashed its price target by a quarter to 500p.

“We have been mindful that the SFO investigation would create some volatility in PFC share price; however, headlines from the SFO about a former PFC employee pleading guilty to bribery associated with more recent contracts won by PFC in Iraq and Saudi Arabia, reflects negatively on the stock, in our view,” read a note to clients.

“We recognize that there is a value case to be argued and no charges have been brought against the company (as of now) and that PFC’s stance against the investigation can yet be proven correct; but given (i) risk of further escalation, and (ii) a need again for reassurance that PFC’s competitive position is not diminished, we have less confidence in the outlook.”

Petrofac shares rose 1.5% to 399p on Monday morning.

Mon, 11 Feb 2019 12:21:00 +0000
<![CDATA[RNS press release - Board update ]]> Thu, 07 Feb 2019 09:52:35 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 10 Jan 2019 12:51:59 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 07 Jan 2019 15:38:46 +0000 <![CDATA[News - Petrofac shares boosted by upgrade to ‘buy’ from ‘hold’ from Jefferies International ]]> Jefferies International gave a boost to Petrofac Limited (LON:PFC) shares on Monday, upgrading its rating for the FTSE 250-listed oil services group to ‘buy’ from ‘hold’.

However, the US broker trimmed its target price for Petrofac to 590p from 640p, albeit with the shares currently trading at 525.60p, up 3.1% on Friday’s close.

READ: Petrofac says trading in line with expectations, new order intake of US$5.0bn in year to date

In a note to clients, Jefferies’ analysts pointed out that Petrofac “continues to occupy a stay away category for many investors."

But, they added: “For us, it is an increasingly well-run business providing realistic expectations trading opportunities within continued tough Oilfield Service markets.”

The analysts continued: “With a net cash balance sheet now firmly in sight and realistic new awards required for 2019 we upgrade to Buy (again) at what we see as depressed multiples: 5.5x FY19 EV/EBITDA, 7x adj EPS and ahead of, we expect, good results on 28 Feb.”

Mon, 07 Jan 2019 11:30:00 +0000
<![CDATA[News - Petrofac says trading in line with expectations, new order intake of US$5.0bn in year to date ]]> Petrofac Limited (LON:PFC) has said it is trading in line with expectations with the oil services group having seen new order intake of US$5.0bn in the year to date

In a pre-close trading update, the FTSE 250-listed group also said its net debt is expected to be around US$250mln as at 31 December 2018 benefitting from lower capital expenditure, a working capital inflow in the second half of 2018 and approximately US$0.5bn of net divestment proceeds.

READ: Petrofac boss boasts of “a good set of first-half results”

The company added: “We continue to review options for our remaining non-core assets, consistent with our strategy to reduce capital intensity.”

Ayman Asfari, Petrofac's group chief executive, commented: "We are on course to report good results, which reflect solid operational performance in all our businesses and excellent progress delivering our strategy.”

He added: "Healthy new order intake in both our core and growth markets reflects our competitiveness in a market that has seen some delays in contract awards.”

The group – which still has a Serious Fraud Office investigation looming over it - said it will announce its full-year results for the year ending 31 December 2018 on 28 February 2019.

Tue, 18 Dec 2018 07:44:00 +0000
<![CDATA[RNS press release - Trading update ]]> Tue, 18 Dec 2018 07:00:06 +0000 <![CDATA[RNS press release - Completion of sale of interest in GSA development ]]> Wed, 12 Dec 2018 07:00:03 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 23 Nov 2018 13:38:52 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Mon, 12 Nov 2018 16:12:46 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 31 Oct 2018 15:30:42 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 31 Oct 2018 09:38:47 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 29 Oct 2018 12:08:34 +0000 <![CDATA[RNS press release - Petrofac consortium wins Thailand refinery project ]]> Fri, 19 Oct 2018 13:53:42 +0100 <![CDATA[RNS press release - Completion of sale of 49% of Mexico operations ]]> Fri, 19 Oct 2018 07:00:02 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 08 Oct 2018 16:17:36 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 02 Oct 2018 16:10:23 +0100 <![CDATA[RNS press release - Interim Dividend Exchange Rate ]]> Wed, 26 Sep 2018 16:31:41 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 25 Sep 2018 10:09:03 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 18 Sep 2018 15:49:43 +0100 <![CDATA[News - Petrofac boss boasts of “a good set of first half results” ]]> Petrofac Limited (LON:PFC) shares rose as its chief executive Ayman Asfari described Wednesday’s interim financials as “a good set of first-half results”.

The FTSE 250-listed oil services and engineering reported some US$2.78bn of revenue for the six months ended June 30, versus US$3.12bn in the comparative period of 2017, though profitability measures arguably improved.

Focusing on its business performance, Petrofac claimed a US$190mln profit though as a result of some US$207mln of impairments and exceptional items the company actually reported a net loss of US$17mln.

READ: Petrofac to exit Greater Stella project with Ithaca transaction

Net debt came in at US$900mln, which Petrofac described as in line with expectations.

It highlighted new orders of US$3.3bn for the period, adding to the pipeline ‘backlog’ of US$9.7bn as of June 30.

"We remain focused on our core and delivering organic growth as the market recovers,” Petrofac CEO Asfari said in the results statement.

“The group has secured US$3.3bn of new orders in both established and adjacent markets year to date and is well placed on several bids due for the award before the end of the year.

“Our focus on operational excellence is reflected in improved margins and continued good progress across our project portfolio in the first half.  Furthermore, we are well positioned for the second half with good revenue visibility, a strong competitive position and healthy liquidity.”

In afternoon trading, Petrofac shares were 1.6% higher at 670.80p.

Nicholas Hyett, equity analyst at Hargreaves Lansdown commented: “Debt is a bit of a blot on the copybook at the moment, but with sales of its oil & gas assets coming thick and fast that should fade, and bar a major oil crash the group has more than enough financial headroom to see it through the near term.”

He concluded: “Overall we think Petrofac is improving. But it’s a much smaller business than it was a few years ago, and investors shouldn’t forget the SFO investigation still looming over the group either.”

 -- Adds share price, analyst comment --

Wed, 29 Aug 2018 08:33:00 +0100
<![CDATA[RNS press release - Results for the six months ended 30 June 2018 ]]> Wed, 29 Aug 2018 07:00:30 +0100 <![CDATA[RNS press release - Petrofac awarded US$600 million project in Algeria ]]> Wed, 29 Aug 2018 07:00:06 +0100 <![CDATA[News - Petrofac to exit Greater Stella project with Ithaca transaction ]]> Petrofac Limited (LON:PFC) has agreed to sell out of the Greater Stella Area development in a deal with Ithaca Energy.

The deal with Ithaca, which de-listed from London in June 2017 as it was acquired by Delek Group, will see Petrofac receive US$292mln for its 24.8% stake in the North Sea project.

Ithaca will pay US$145mln upfront with the further non-contingent US$120mln payment deferred to the period between 2020 to 2023, and another US$28mln contingent consideration will be payable in the future depending upon field performance.

READ: Petrofac downgraded as Jefferies uncertain over contract wins

The deal is expected to complete in the first quarter of 2019, though it is conditional upon Ithaca’s separate transaction to acquire 25% of GSA from fellow partner DYAS UK Limited.

"This disposal marks a further milestone in our journey back to a capital-light business and, along with recently-agreed transactions in Mexico and Tunisia, marks the significant progress we are making on our stated strategy,” said Petrofac chief executive Ayman Asfari.

Petrofac expects to record a post-tax impairment charge of US$55mln as a result of the transaction.

It plans to use the injection of funds to reduce gross debt.

By taking full ownership of the GSA project Ithaca is increasing its production base by around 50%, to 22,000 bopd for 2018, and it also gains total control and flexibility over the continued development of the project.

The transaction is due to complete by 1 January 2019.

Fri, 24 Aug 2018 07:56:00 +0100
<![CDATA[RNS press release - Petrofac to sell interest in GSA development ]]> Fri, 24 Aug 2018 07:00:05 +0100 <![CDATA[News - Petrofac downgraded as Jefferies uncertain over contract wins ]]> Petrofac PLC's (LON:PFC) sales efforts could be slipping short of the necessary pace, that’s according to Jefferies, which has downgraded the oil services firm.

Stepping away from a previously bullish view, Jefferies now sees Petrofac as a ‘hold’ with an unchanged price target of 640p.

Analyst Mark Wilson, in a note, highlighted that Petrofac’s new bank facility and the Mexico sell-down alleviates balance sheet fears, as a bond matures this October, however, new business is needed.

READ: Petrofac secures US$300mln of new bank facilities

“What remains is to deliver the $3.5bn of new Lump-Sum E&C awards we see as a minimum during 2018,” the analyst said in a note.

Wilson reckons it is “more than possible” for Petrofac to achieve the contract wins, with US$1.8bn so far landed in the year-to-date, though he cautions that no “true anchor” project (US$1bn or more for any single project) has been secured – albeit, he notes company guidance that major contracts could come at in late Q3 or Q4.

Adding to the uncertainty, the analyst added: “The unknown headline risk that also means we choose to exercise price target discipline and move to hold is the ongoing SFO investigation.

“We include a $400m cash fine across 2019-2020 and continue to point to industry awards as PFC's fundamental business answer to that situation.”

Thu, 16 Aug 2018 11:48:00 +0100
<![CDATA[RNS press release - Petrofac awarded Basra Oil Company EPC contract ]]> Mon, 13 Aug 2018 14:03:09 +0100 <![CDATA[News - Petrofac secures US$300mln of new bank facilities as US$600mln bond maturity date looms ]]> Oilfield services provider Petrofac Limited (LON:PFC) has secured US$300mln of new bank facilities as it gears up to repay a US$677mln bond later this year.

That bond is due to mature in October, at which point, the full amount plus interest (at 3.4%) will need to be paid back.

READ: Petrofac sees good revenue visibility as new order intake gains

The FTSE 250 group, which is still under investigation by the UK’s Serious Fraud Office in connection with a probe into Monaco-based Unaoil, said the new facilities will provide additional liquidity and reduce utilisation of its existing revolving credit facility.

“This financing is in line with the company's strategy to pre-fund expected liquidity requirements for at least the next 12 months, including maturity of Petrofac's US$677mln 3.40% bond in October 2018,” according to a short stock exchange announcement on Monday.

At the end of July, Petrofac sold off almost half of its Mexico operations for up to US$274mln; cash which it said would also go towards paying down its debts.

In a separate announcement, Petrofac said it had been awarded a US$370mln contract by the Basra Oil Company for the expansion of the central processing facility at the Majnoon field in Southern Iraq.

Under the 34-month contract, the lump-sum engineering, procurement and construction project scope of work includes two oil processing trains which are able to process two hundred thousand barrels of oil per day.

Shares jumped 3.3% on the back of the news to 641.8p in late-afternoon trading Monday.

--Adds news on contract award and updates share price--

Mon, 13 Aug 2018 12:14:00 +0100