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.

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
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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.

StockMarketWire.com
Petrofac has cut its interim dividend by 42% to 12.7 cents per share after a decline in commodity prices reduced its cash flow.

The company said it intends to target a dividend cover of between 2.0x and 3.0x business performance earnings as it transitions back towards a low capital intensity business model.

Business performance net profit fell by 4% to $158 million in the first half.

Revenue in the engineering and construction business fell by 20% due to project scheduling and in the integrated energy services division by 37%, or 14% excluding asset sales.

Engineering and production services revenue declined 17% reflecting lower activity, utilisation and order intake, as well as the depreciation of sterling. But net profits grew 2% to $51 million.

Group net debt was $1.0 billion at 30 June 2017, up from $0.6 billion six months ago.

The group has secured $2.7 billion of new orders in the year to date.

It said profit for the full year is expected to be weighted to the second half of the year.

"We are taking a range of measures to deliver a sustainable reduction in net debt and strengthen our balance sheet. These include a relentless focus on operational excellence, reducing capital investment, rebasing our dividend and divesting non-core assets," the company said.

I'm out.

re - in/out

Stan

do you still like quickies at your old age?

Italy watchdog fines Petrofac CEO for alleged insider trading on Saipem shares

MILAN, Aug 31 (Reuters) - Italian market watchdog Consob has imposed fines on Petrofac CEO Ayman Asfari and former Saipem CEO Pietro Franco Tali for alleged insider trading in Saipem shares in 2012, a Consob document said.

Consob said it had fined Asfari 300,000 euros ($355,000) and seized assets worth around 385,000 euros.

Tali was fined 150,000 euros, it said.

Earlier this month Asfari said he had been fined 300,000 euros by Consob in relation to a transaction made in 2012 involving the shares of a listed Italian company.

"The premise of Consob's case was that I met with an Italian executive who provided insider information. I can show irrefutable evidence that such a meeting never took place," he said on Aug. 24.

The CEO said he had not been notified by Consob of the charges and so had not had the chance to defend himself.

Tali, caught up in a corruption probe regarding contracts won in Algeria, announced he was stepping down as CEO of Saipem in a statement issued on December 5, 2012.

In January 2013 Saipem issued the first of a series of profit warnings that sent its shares crashing.

no more wonder if... it has

Has reached this morning the 61.8 % retracement at 400p

PETROFAC TO BUILD GAS RECEIVING TERMINAL IN TURKEY
Petrofac has been awarded an Engineering, Procurement and Construction (EPC) contract, valued at approximately 340 million euros, with South Stream Transport B.V., a wholly owned subsidiary of GAZPROM, for the development of onshore pipelines and a gas receiving terminal near Kıyıköy in Turkey.

Through its EPCm business, Petrofac has been undertaking early works since April, which includes FEED verification, detailed design and procurement for the project which is associated with the offshore section of the TurkStream Gas Pipeline.

Under the contract, Petrofac will provide engineering, procurement and construction for the receiving terminal, which will be ready for commercial operations in December 2019. When completed, the facility will receive 31.5 billion cubic metres of gas annually from the TurkStream pipeline originating from the compressor station in Anapa, Russia.

Commenting on the award, Roberto Bertocco, Managing Director, EPCm for Petrofac Engineering and Production Services said: "We're delighted to be working with South Stream Transport to help open up a vital gas export channel to Turkey and Southeast Europe.

"We have been working collaboratively and successfully with our client's team for the past five months to establish the project. We now look forward to progressing to the next phase where our focus is on achieving safe and effective delivery in line with South Stream Transport's goals and expectations."

Anyone subscribing to the MoneyAM Level 2 platform please take note that most days it is not reporting the correct Trade High nor Trade Low information and "some days" not reporting the correct Opening Price or Closing Price.

The reason is because MoneyAM's Level 2 system is not sensing the Auto Trades or Ordinary Trades correctly so is wrongly reporting them

MoneyAM has been unable to fix the fault for over 8 weeks now but are still charging full price for their Level 2

StockMarketWire.com
Petrofac was awarded a contract worth more than $700m by Sakhalin Energy Investment for its onshore processing facility (OPF) on Sakhalin Island.

The project comprises a lump-sum engineering, procurement and offshore fabrication component, as well as a reimbursable element for construction and site services.

The scope of work includes inlet separation and feed gas compression facilities, a new flare system, utilities, substations and associated buildings, a temporary beach landing facility, refurbishment of the existing camp, temporary site facilities for Sakhalin Energy and Petrofac, as well as brownfield tie-ins to the existing OPF.

With early engineering work already underway, the project will support Sakhalin Energy in maintaining its sustainable LNG capacity.

Reason for optimism at Petrofac?- By Alistair Strang | Thu, 7th September 2017

Why is X Factor not shown once every four years? Everyone acknowledges 'Reality' shows are basically garbage, designed to fill these awkward spots between advertising.

Thus, it was with considerable horror we discovered our own favourite show, "Gold Rush", is classed as Reality TV! We thought it documentary - but our reality is better than everyone else's anyway...

Seriously though, if X Factor followed the World Cup model, it would prove more interesting with a wider timeframe allowing some proper talent to emerge. Similarly, if Big Brother followed the example set by the Scottish village of Brigadoon, it would appear only once every 100 years, along with "I'm' a Nonentity, get me out".

What's this got to do with shares? The clue is the word "timeframe" (along with irritation at a granddaughter's fascination with X Factor).

We never deny timeframes are our Achilles heel, though we do feel they are generally impossible to predict accurately.

A recent example was Royal Bank of Scotland (RBS), where we'd postulated a target of 265p. It met this target, even exceeded it, and is now rummaging around in the gutter along with politicians searching for integrity.

We "knew" RBS was going to hit 265p and anyone who'd followed our commentary probably cussed when the price actually bettered target. From our perspective, it didn't really matter as we also "knew" 265p would doubtless provoke some stutters anyway, so, despite cursing us when it hit 270p, perhaps a round of drinks are in order with the share price slithering around 244p now.

They key element was it almost had to happen, but we'd no idea how long it would take.

And this is the problem with Petrofac (PFC). It has experienced a couple of good sessions recently and we feel guilty, 'cos it had ticked virtually every box to suggest the price really wants to bottom (ideally before) at 180p. At time of writing, it's trading at 444p and needs above 740p (red line on the chart) to force us to shut up about the 180p bottom potential.

But when a 4 quid share starts experiencing 8%-plus days, we must surely pay attention?

From a near-term perspective, it seems some optimism remains possible, as above just 448p calculates as entering a cycle toward 490p next.

While perhaps not the most scintillating of notions, the key ingredient comes if 490p is bettered as our secondary comes in at 568p. Visually, given an ambition of 490p matches the highs of earlier this year, common sense demands some stutters around such a level. So, if chasing a quick trade this presents a sane target.



The 568p thing is a bit more tenuous - remembering an ultimate bottom of 180p remains, exerting its own brand of gravity. But, with closure above 490p, it becomes a difficult thing to ignore as the price could easily accelerate beyond such a point and cover the gap from 615p.

In summary, there are some very real dangers associated with this share price and a poor news report is liable to stuff it downward sharply. For now though, the visuals imply an attempt at 490p is not out of the question and hopefully, with closure above, beyond.

Societe Generale today reaffirms its buy investment rating on Petrofac Ltd (LON:PFC) and set its price target at 530p.

TMF article posted today

"Also offering upside potential with considerable risk in the oil and gas sector is Petrofac (LSE: PFC). The support services company continues to perform relatively well as a business, but the Serious Fraud Office (SFO) investigation is continuing to hold back investor sentiment. The outcome of the investigation could have a positive or negative impact on the company’s share price.

Despite this risk, Petrofac seems to be worth buying at the present time. It has a wide margin of safety which indicates that the market has priced-in potentially negative news flow. For example, it has a price-to-earnings (P/E) ratio of just 6 and a dividend yield of 7.8%. Since dividends are covered more than twice by profit, they appear to be highly sustainable over the medium term.

Certainly, the company has a very uncertain future. It could be fined, for example, as a result of the SFO investigation. However, with such a low valuation, the rewards on offer appear to be hugely enticing and could make the stock of interest to less risk-averse investors."

Speculative interest in Pfc as reported by The Telegraph

http://www.telegraph.co.uk/business/2017/11/16/market-report-us-oilfield-services-giants-circle-vulnerable/

StockMarketWire.com
Petrofac is trading in line with expectations, with US$5.2 billion in new order intake so far this year.

Net debt is forecast to be around US$850 million at 31 December 2017, in line with expectations.

Ayman Asfari, Petrofac's group chief executive, said: "We have seen a recovery in new order intake in 2017, securing US$5.2 billion in new awards in the year to date in both existing and new markets. Tendering activity remains high, we continue to maintain our bidding discipline in competitive markets and we have a healthy order backlog.

"Our portfolio is in good shape, and we remain focused on project delivery and maintaining our cost competitiveness through operational excellence. This - together with measures we are taking to strengthen our balance sheet - positions us well."

Petrofac announces that it has completed the migration of the Santuario Production Enhancement Contract (PEC)1 into an interest in a Production Sharing Contract (PSC)2.

Effective from 18 December 2017, Petrofac will own a 36% equity interest in the PSC, with PEMEX Exploration & Production Mexico (PEMEX) having a 64% interest. The PSC will run for 25 years, with two optional five-year extensions. Petrofac will be Operator of the block and will carry PEMEX's share of cash calls for the first year.

Rob Jewkes, Chief Operating Officer, Integrated Energy Services, commented: "We are pleased to have successfully concluded the migration of the first of our Production Enhancement Contracts. We are committed to unlocking value in the block through a new field development plan in conjunction with our partner PEMEX."

Notes
1. The Santuario Production Enhancement Contract was signed in October 2011. It covers the onshore Santuario block in Tabasco State, central Mexico, which produced an average of c. 7 kboed in 2016.
2. As at 30 June 2017, the net book value of the Santuario PEC was US$260 million. As a result of the migration, Petrofac expects it will incur a small impairment charge.

Deutsche Bank AG selling today.