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.

Goldman Sachs note:
"Petrofac stands out in our European Oil Services coverage for its: 1) geographic exposure; 2) FCF improvement as the investment cycle for major projects comes to an end; and 3) attractive valuation. The 2Q results indicate it is on track to deliver revenue growth, and management highlighted no interest in increasing capital commitments in IES. Given its strong backlog and Middle East exposure, we expect Petrofac to deliver steady revenue growth and, as the capex cycle ends, we see strong FCF generation (we see a 2017 FCF yield of 11.1%), which could translate into div. growth/ share buybacks. We remain Buy and add the stock to the Conviction List.
Petrofac’s exposure to the Middle East (highest in our European Oil Services coverage) provides it with opportunities to maintain/increase the backlog while most of the industry (mainly companies most exposed to offshore) is struggling to get new orders. We expect activity in the Middle East to remain strong as production continues to ramp, which provides good visibility on Petrofac’s backlog and revenue. In addition, the potential for international sanctions on Iran being lifted could mean new markets for Petrofac. As investment in IES and new vessels come to an end, we see Petrofac generating strong FCF, which provides upside potential to the current dividend yield of c.6%.
Valuation The stock trades on 2015/16E EV/EBITDA of 6.5x/5.5x vs. a last five-year average of 8.5x and averages for our European E&C coverage of 6.4x/5.9x. We marginally lower our 2016/2017 EBITDA estimates by 2%/6%, and our 12-month price target decreases to 1072p (from 1100p) based on an unchanged 2016E EV/EBITDA of 7.0x."

Petrofac, the international service provider to the oil and gas industry, announces that due to issues with ZPMC's performance in respect of the construction of the proprietary design Petrofac JSD 6000 deepwater multi-purpose offshore vessel, Petrofac has terminated its contract with ZPMC.

Ayman Asfari, Group Chief Executive, said: "It is regrettable that it has become necessary for us to take this decision, and the Board is now reviewing its options."

Market likes that up over 11% so far.

amazing reaction, but that is often the case with PFC
as i am a long-sufferer with this one, i am very happy to see this latest jump

Questor share tip: Avoid Oil services until prices fully recover
By John Ficenec, Questor Editor - 3:32PM BST 10 Oct 2015

A short lived oil rally is no reason to buy bombed out oil services stocks on the cheap, says Questor

Oil services
Questor says AVOID
IT IS 40 years since the first North Sea oil reached the shores of Scotland. Since then the UK oil services and engineering industry has flourished creating thousands of jobs and steady returns for investors. Shares across the sector have soared during the past two weeks as the oil price staged a recovery, but we would be wary of joining the party as many challenges remain.

Oil price slump
When oil was above $100 per barrel at the start of last year, the oil majors were spending billions on the exploration and development of existing oil fields.

Technological advancements also unlocked shale deposits in the US, creating a whole new boom of drilling and spending.
Fast forward 18 months and the oil services sector is facing a nuclear winter. Spending plans by the oil majors have been slashed and, with the oil price having plunged to about $50 per barrel, US shale is being pushed to the brink.

Lumpy revenues
The worst may still be ahead for the sector because revenue streams are dependent on other firms spending.
Projects to build oil rigs or maintain existing facilities can be delayed or cancelled when the oil price falls. A reduced budget on a project can greatly impact profits. As a result, the rate at which cash comes into an oil services businesses can be very lumpy and the full impact from falling oil prices could still lie in the future.

Buying the rally?
Analysts at broker Investec feel that industrial valve and pump maker Weir is facing tough times ahead.
Weir was downgraded to a sell with a price target of £11.20 as it grapples with a slowdown in both the oil and gas, and mining industries.
Weir Services replace runner in Peace Canyon hydro power plant in British Columbia, Canada

The Weir Group is no longer a FTSE 100 company
In the last five years, engineers Wood Group and Amec Foster Wheeler both completed big deals that increased exposure to US shale gas. Amec paid £1.9bn for Foster Wheeler last year and Wood Group bought PSN in 2010.
We downgraded Amec to a sell (972½p, March 24) and although the shares may look attractive trading on 10 times forecast earnings, that recommendation remains. Wood Group has been on a tear, gaining 20pc last week. However, the shares, trading on 12 times forecast earnings, are at risk, and we wouldn’t be looking to take part in this rally.

The smaller players Petrofac and Lamprell have both joined in the rally with their shares rising sharply. However, according to investment bank Goldman Sachs little has changed in the fundamental outlook for the oil market, with weak demand and oversupply pushing down prices.

Patience is key
Investors should base any decision on results rather than hope, and would be advised to wait for audited full-year numbers. Only then can a sensible investment decision be made, as this relief rally may prove short lived.

PFC awarded contract http://www.moneyam.com/action/news/showArticle?id=5153755

Will be very interesting to see what the trading statement brings on Tuesday.

Some solid support @ 740p. Looking at the line chart in the header, tempting to think triple bottom if it hits it and bounces. Probably wishful thinking, will watch it though :0)

Contract wins http://www.moneyam.com/action/news/showArticle?id=5174059

Trading Update http://www.moneyam.com/action/news/showArticle?id=5174849

Petrofac's engineering, construction, operations & maintenance (ECOM) division has already logged orders of $8.8bn (£5.8bn) for the year. The company released a trading update on Tuesday ahead of its full year results due out in February next year, showing backlog in the division stood at record levels of US$18.5bn on 30 November 2015 and the company said operationally, its portfolio continues to perform in line with expectations.

Broker cuts it's price target.. for what it's worth -): http://www.moneyam.com/action/news/showArticle?id=5176162

Right Alf here's another question and I think you may be able to answer this one, is this a buy or sell?
http://www.moneyam.com/action/news/showArticle?id=5194017

i have kept a few in my sipp but sold those on cfd a couple of days back

Yes but what about the link.

your money, not mine
i've told you what i've done so draw your own conclusions ....... doubt i'ld be a new buyer in today's climate

I didn't ask you for your opinion as to a buy or sell for PFC just what the link stated I.E have they gone above or below that stated 6%.

What is up with you today? -):

sorry - they have increased their holding by 2m shares

thought you were asking whether PFC was a buy or a sell

That's all right.. your apologies are excepted -):

2M eh, interesting.

With PFC having interests in the Middle East, Operational centres in the UAE, with projects and support in Kuwait, Oman, Qatar, Saudi Arabia and Iraq is it feasible that they may feel it advantageous to venture into Iran now at some stage?

That Deutsche Bank purchase came before the Iran news of an agreement, I wonder if DB may have had a tip off.

Come on Alf your supposed be our Oil expert around here.. so what do you think about the above?

TTT for Alf.. now that he's finally crawled out of bed.