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.

The Sunday Telegraph
Jillian Ambrose - 25 JUNE 2017 • 3:22PM

Scandal-hit Petrofac to assure investors that it is ‘business as usual’

The FTSE 250 group has been dragged into the Unaoil corruption scandal which has engulfed the global oil industry

Petrofac will be hoping to convince investors that it is business as usual for the troubled oilfield services group in its trading update on Tuesday.

The FTSE 250 group has been dragged into the Unaoil corruption scandal which has engulfed the global oil industry and could face a lengthy probe by the Serious Fraud Office which analysts fear may scupper its chances of picking up new work.

Petrofac’s earnings are expected to be resilient in the near-term due to an existing backlog of $14.3bn as of the end of last year. It also has financial headroom of $1.4bn and has been granted a one year extension on its revolving credit facility to 2021.

In addition the Jersey-based services group recently clinched a new decade-long contract to provide Petroleum Development Oman with engineering, procurement and construction work.

It follows a three-year programme of similar services for Oman that Petrofac already provides, and could help put it in line to win one of the $1.5bn packages for Oman’s Duqm refinery project when it is sanctioned in the second half of this year.

The major contract win has helped to soothe investor jitters over whether the group’s work will remain in demand as the SFO probe drags on.

Both Petrofac and Unaoil have denied allegations of wrongdoing.

Petrofac could face a possible $800m (£625m) fine if the SFO finds, following an investigation, that it used Unaoil as a “middle-man” to secure consultancy contracts worth $2bn for work in Kazakhstan between 2002 and 2009. But analysts have warned that the real threat to its balance sheet is in its ability to keep securing service contracts as the two year probe rumbles on.

Morgan Stanley has slashed its valuation of the group by a third, to £6 a share, and warned that it could fall by almost half again to £3.50 a share as the investigation evolves. Petrofac was worth over £10 a share two years ago.

Petrofac issued a pre-close trading update on Tuesday morning, ahead of the announcement of its half year results for the six months to 30 June on 30 August, claiming underlying net profit for the first half of 2017 was expected to be between $135m and $145m, with full year net profit expected to be weighted to the second half of the year. The FTSE 250 company reported a new order intake of $1.7bn in the year to date, with a backlog of $13.0bn at 31 May. Net debt was forecast to be around $1.1bn at 30 June, which would be in line with expectations.

re - update
re - dividend

Orders ARE falling
Profit guidance HAS been reduced

If they recognise the falling order book say with a headcount reduction or at least an awareness It would be more comfortable.

It only takes a random one off charge to wipe out profits (see last year). So maintaining a hefty divi with $1.1 billion debt and with other background noise going on seems unlikely.

Time will tell as usual, don't panic Mr....

Reeuters - BUSINESS NEWS | Tue Jun 27, 2017 | 9:17am BST
Petrofac says bidding opportunity pipeline robust

British oilfield services company Petrofac Ltd on Tuesday said it expected an underlying net profit of $135 million (106 million pounds) to $145 million for the first half of 2017 as strong bidding activity in its core markets led to a robust order book.

Shares in the company were down 2.6 percent at 415 pence at 0810 GMT on the London Stock Exchange.

"High level of tendering activity is evidence of greater confidence in our core markets and we continue to have a very good pipeline of bidding opportunities," CEO Ayman Asfari said in a statement.

Bidding activity in the first half of the year was consistent with Petrofac's guidance of higher activity in its core Middle Eastern markets, CFO Alastair Cochran told Reuters.

Full-year underlying net profit would be weighted towards the second half of the year in a ratio of about 40:60 percent, he added.

Order book stood at $13 billion as of May 31, said the company, which builds and operates oil and gas facilities. It recorded an order book value of $14.3 billion in 2016 as orders picked up in its core Middle Eastern markets.

The company's high exposure to the Middle Eastern oil markets resulted in good backlog coverage for 2017 as record production in the region drove up contract awards.

Petrofac is under investigation by the UK's Serious Fraud Office (SFO) for its dealings with Monaco-based Unaoil, which Petrofac said it had engaged primarily in Kazakhstan to provide local consultancy services between 2002 and 2009.

Numis today reaffirms its buy investment rating on Petrofac Ltd (LON:PFC) and set its price target at 600p.

Declared short interest is currently 7.31%
AQR Capital management increasing their position each day in June.

Morgan Stanley today upgrades its investment rating on Petrofac Ltd (LON:PFC) to equal weight (from underweight) and raised its price target to 475p (from 400p).

Currently 455p.....so 475p is looking realistic, for a change!

This one's a traders dream at the moment providing the usual caution is exercised.

Goldman Sachs today reaffirms its buy investment rating on Petrofac Ltd (LON:PFC) and set its price target at 565p.

StockMarketWire.com
Petrofac has secured a contract extension and a new award with a combined value of more than $100 million.

The contracts are for construction management, engineering, commissioning and start-up services for two international oil companies (IOCs) in Iraq.

It builds on the $70 million of new awards in Iraq announced in April.

PETROFAC AWARDED DUQM REFINERY PROJECT
Petrofac, in a 50/50 joint venture with Samsung Engineering, has received notification of intent to award a contract worth approximately US$2 billion with Duqm Refinery and Petrochemical Industries LLC (DRPIC) in the southern part of Oman.

Work on the 47-month project will commence shortly, subject to financial closure and full notice to proceed from DRPIC. Petrofac's and Samsung's scope of work includes engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and offsites at Duqm.

A strategic investment for the Sultanate of Oman, and forming the cornerstone of the Duqm Special Economic Zone, the development occupies more than 2,000 acres and, when completed, will have a refining capacity of approximately 230,000 barrels of oil per day.

E Sathyanarayanan, Group Managing Director, Engineering & Construction, commented:
"This significant project represents our twelfth in the country and serves to reinforce Petrofac's commitment to one of our core markets; one in which we have been present since 1988. Furthermore, it provides a valuable opportunity for us to continue to increase in-country value through engaging with the local supply chain and recruitment of local resources.

"We are very much looking forward to working with Samsung on this project and growing our relationship with DRPIC."

478.55p +34.45p

PETROFAC AWARDED DUQM REFINERY PROJECT

Petrofac, in a 50/50 joint venture with Samsung Engineering, has received notification of intent to award a contract worth approximately US$2 billion with Duqm Refinery and Petrochemical Industries LLC (DRPIC) in the southern part of Oman.

Work on the 47-month project will commence shortly, subject to financial closure and full notice to proceed from DRPIC. Petrofac's and Samsung's scope of work includes engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and offsites at Duqm.

A strategic investment for the Sultanate of Oman, and forming the cornerstone of the Duqm Special Economic Zone, the development occupies more than 2,000 acres and, when completed, will have a refining capacity of approximately 230,000 barrels of oil per day.

E Sathyanarayanan, Group Managing Director, Engineering & Construction, commented:
"This significant project represents our twelfth in the country and serves to reinforce Petrofac's commitment to one of our core markets; one in which we have been present since 1988. Furthermore, it provides a valuable opportunity for us to continue to increase in-country value through engaging with the local supply chain and recruitment of local resources.

"We are very much looking forward to working with Samsung on this project and growing our relationship with DRPIC."

don't scare yourselves by looking back at the chart from may, when all collapsed in a nasty mess :-)

the above contract apart, PFC should be a good beneficiary if there is indeed a sustained recovery in crude ...... PMO and TLW clearly think this will be the case as they have both cut back sharply on their hedging positions

Large drop earlier

the lowest point today was @ 9am, 416.20p and I was looking at the time, and that was over 50% retrace

Wonder if it will go for 61.8% 400p as the oil price is moving lower since yesterday

Chart with retracement
--

PETROFAC SELLS STAKE IN PÁNUCO CONTRACT TO SCHLUMBERGER
Petrofac and Schlumberger today announce that Petrofac has sold its 50% interest in Petro-SPM Integrated Services S.A. de C.V (1) to Schlumberger. Petro-SPM operates the Pánuco Integrated Service Contract in Mexico. Schlumberger now owns 100% of Petro-SPM.

The total potential consideration is in line with the net book value of Petrofac's interest and comprises cash on completion and deferred consideration. The deferred consideration comprises both a payment on migration from an Integrated Service Contract to a new contract form and a further share of post migration cash flows.

Rob Jewkes, Chief Operating Officer, Petrofac Integrated Energy Services, commented: "We are pleased to conclude this transaction, which is in line with our strategy and simplifies the ownership of the Pánuco field. We will continue to focus on the remaining production service contracts in our Mexican portfolio."

"We consider Mexico's Energy Reform as a significant step in the evolution of the country's oil and gas industry, and we are optimistic in regard to the various business opportunities created under the new reforms," said Patrick Schorn, Executive Vice President, New Ventures, Schlumberger. "This transaction aligns with our well-established portfolio of production management projects and enables us to move forward with our plans to continue to develop the Pánuco field."

This transaction was completed on August 15, 2017.

Did he benefit from the transaction?
It looks like, otherwise no fine would have been impose......

BOARD STATEMENT
Petrofac Limited ("Petrofac" or "the Company") announces that it has been informed by its Group Chief Executive Ayman Asfari (Mr Asfari) of administrative sanctions that have been made against him by the Italian National Commission for Companies and the Stock Exchange ("CONSOB") relating to a past personal dealing in securities of an Italian listed company.

CONSOB has alleged and determined that an executive of the Italian company passed inside information to Mr Asfari and that Mr Asfari subsequently acted on that information by trading in the securities of the Italian Company.

Mr Asfari has informed the Company that CONSOB's decision was made with no prior notification of the charges against him and he was not given the opportunity to defend himself. Mr Asfari has informed the Company he strongly refutes he was privy to any inside information, believes the decision to be wholly without merit, and is determined to contest the decision, and the process by which it was conducted, to the fullest extent possible.

The sanctions imposed by CONSOB on Mr Asfari comprise: an administrative fine of 300,000 Euros; a 12-month disqualification from taking up, inter alia, administrative, management or supervisory positions in any Italian listed companies; and an order confiscating property with a value of 385,000 Euros.

The Company understands that Mr Asfari has, through his legal advisers, already asked CONSOB to revoke its decision at the earliest opportunity on the basis he was not given the opportunity to present any defence and refute the charges. Absent any such revocation, the Company understands Mr Asfari intends to appeal the decision in accordance with Italian law and that he is providing CONSOB with documentation that substantiates his request.

Mr Asfari said: "I was shocked to receive this notification, and I informed the Company as soon as I was made aware. I absolutely reject this decision which was made entirely in my absence, affording me no opportunity to defend myself. I absolutely confirm that no communication ever took place as alleged and I was never in possession of inside information. I have instructed my lawyers to immediately appeal this decision and I am confident it will be overturned."

Rijnhard van Tets, Petrofac's Chairman, said: "The Board fully supports Ayman in his defence against this decision, the steps he is taking to prove that in no way did he act improperly, and his leadership of the Company at this difficult time."

The Board attaches a personal statement from Mr Asfari in connection with this issue.

The news has hardly effected the SP so far.

In again.