On 3rd July PFC announced that it was trading well ahead of expectations. Not surprisingly, sp jumped but has now fallen back pretty much to the same level as before the announcement.

While perhaps not as exciting as finding the next Cairn, remember that in the goldrush days, it was rarely the prospectors who made the money, but rather the suppliers of the spades and tents and stuff - e.g. Levis if memory serves me aright.

StockMarketWire.com
Petrofac said it is on track to deliver FY 2014 net profit towards the lower end of the $580m-$600m range provided in previous guidance. It reported a strong order intake of $10bn year to date and backlog at a record level of about $21bn.

Looking to 2015, Petrofac said the lower oil-price environment and expectations of delivery on certain IES projects, coupled with anticipated outcome on Laggan-Tormore, was likely to result in net profit in 2015 of about $500m.

This 2015 guidance reflected:

o current 2015 forward curve for oil price expected to reduce IES net profit by around US$45 million compared with previous guidance and current market expectations(1)

o our latest view of cost and the timing of first oil in respect of the Greater Stella Area project in the UK North Sea

o rephasing of certain field development activities under our existing Mexico PECs pending conclusion of the potential contract migration process

o managing our field investment on the Ticleni PEC in Romania as we continue to work towards a revised Field Development Plan

o an expected final commercial settlement in respect of the Laggan-Tormore project in Shetland resulting in no profit or loss being recognised in 2015 on the project

CEO Ayman Asfari commented:

"This has been a difficult period for Petrofac and the industry. The Board has analysed the potential impact of a lower oil price environment on our IES business and also made a critical assessment of our expectations for project delivery in 2015.

"In the main our project portfolio is in good shape, but it is clear that on a small number of projects our execution has fallen short of the high standards we set for ourselves. We have faced these difficulties and have taken robust action to address them and believe this leaves us on a surer footing for the future.

"The foundations of the business remain strong. Our ECOM division is in very good shape, with good progress made on the resolution of a number of ECOM commercial settlements, a record level of backlog and an attractive pipeline of bidding opportunities.

"We are implementing clear and robust plans to improve project delivery and drive value from the IES contract portfolio.

"I am confident that Petrofac will meet the challenges presented by certain projects in our portfolio and the medium-term growth prospects for our business remain strong."

Now down around 25%. A recovery play at some point the only question is when.

This tends to drop its drawers far more rapidly than pulling them up!

Indeed, the usual case of wheres the bottom, all the while oil prices stay at current levels and or stop falling is the obvious factor.

ouch

889p and still falling, I hope not many in over here

If this gets relegated from the ft100 surely the funds will be selling out.. or maybe they have already started.

thank goodness i only hold a few

Finished down just over 26% and maybe another down day tomorrow.

StockMarketWire.com
Nomura reiterates neutral on Petrofac, target cut from 1000p to 800p.

Definitely worth leaving this one alone to at least early next week what with the Opec meeting tomorrow.

:))

Down another 6%.

it's truly vile, but now too low to want to bite the bullet .... with PFC and TCG this week, it has not been a fun time

Agreed, but this one has a habit of storming back in time, just a matter of how much time especially in the oil related sector.

i wonder if it would be considered a target for anyone

Suppose it depends on the fella Agwar as he seems to own most of the shares if i'm not mistaken.

Think you'v got problems ,i ploughed in to Afren big time yesterday ,timing and wrong comes to mind .

i hold a few AFR, but am not at all tempted to buy more

I haven't held PFC for some time luckily and don't expect a rise in their SP any time soon but they will definitely remain on my watch list.