Petrofac: Evil Banksta stays short, still targeting 4p after today’s dire news & share suspension tomorrow night

In an admission today we learned that shares in Petrofac (PFC) will be suspended tomorrow night as it cannot get its results out on time. It seems to be making progress on a refinancing but it is one that will see existing shareholders diluted to kingdom come. The shares have slumped to 16.75p but could they fall more? Evil Banksta is still targeting 4p but understands if some bears want to bank gains and close. Liverpool’s greatest numbers man since Ken Dodd writes:

Petrofac (#PFC) – notes proposal for “significant” debt to equity conversion, auditor results delay shares suspension on 1st May

Keep Selling Petrofac, the Shoe is Dropping this is free money!

I wrote recently here that Petrofac (PFC) would be the next shoe to drop after Superdry (SDRY) and observed that the bond market is invariably better at pricing risk than the stock market.

Fitch downgrades Petrofac to 'CC'; Removes RWN: this is damning

The credit rating agency Fitch has downgraded its stance on Petrofac's debt to CC. If that is how the debt is viewed that tells you that the equity is worth little or nothing ( as some of us have warned for a long while!). The report is damning and reads:

Petrofac statement – it almost admits how screwed it is

I am not sure why shares in Petrofac (PFC) surged in recent days but anyone buying into the spike and ignoring fundamentals that I have explicitly wared about, will this morning be feeling pretty sore. A statement from the company is awful.

Petrofac (#PFC) – “continues to face challenges in securing new performance guarantees”, discussions including for “a significant proportion of the debt being exchanged for equity”

Petrofac (#PFC) – “over US$200 million” three-year gas field operations contract in Turkmenistan, but what about its overall financial position?

Petrofac: the debt is telling you that the shares will collapse

Debt markets are always more efficient than equity markets. The screenshot below ( hat tip TK) shows that Petrofac (PFC) debt can now be bought at less than fifty cents in the dollar and the price is falling fast. That tells you that the equity is near as damn it worthless. Stay short or go short, this is free money for the bears as I have been flagging up for a while.

Petrofac: talk is cheap, its shares are anything but

At 23.7p Petrofac (PFC) is still capitalized at £124 million. Those who followed shorting advice from myself and Evil Banksta are well ahead but there is far more to come. Today we have news of talks. Talk is cheap. These shares are anything but.

Petrofac (#PFC) – “Update on review of strategic and financial options” just states that “discussions” are ongoing!

Evil Banksta reminds us all why Petrofac is a very shortable near slam dunk zero

Liverpool’s greatest numbers man since Ken Dodd gave a presentation last week where he reminded folks why Petrofac (PFC) is a zero. At 28p the market cap is £144million and it is eminently shortable.

Evil Banksta Writes to a Petrofac Bulletin Board Loon as a Proper Conservative MP should Respond

Some folks are calling for a ban on shorting and have written to their MPs demanding that Petrofac (PFC) and others be saved from the wicked bears. As I explained in bearcast earlier with the case study of World Chess (CHSS), bears and shorters are actually much needed. Now Evil Banksta has responded as a proper Tory MP should.

Petrofac: Big contract wins but no update on how it will solve its balance sheet problems, I'm shorting more and here is why

I promised that I would report this morning on Petrofac’s (PFC) trading statement. At pixel the shares are 31.6p, up 41% from yesterday’s close. At the peak this morning they touched 37.2p, scoring a massive 67% win for the bulls, all of whom seem to be in my timeline this morning, less than politely telling me what a fool I am.

Petrofac (#PFC) – “near-term focus remains on strengthening the balance sheet with ongoing review of strategic and financial options”

My short of the year is still a short: Petrofac shares will collapse, possibly by Wednesday

I picked this as my short for the year on the basis that Cineworld (CINE) was (a) too easy, and (b) not a 100% loss as the borrow rate at the start of the year was an exorbitant 80%!

Petrofac (#PFC) – “examining a range of strategic and financial options”, non-executive director appointment to assist

Petrofac (#PFC) – notes order intake but “free cash flow negative in the first half”, continues to target FY “broadly neutral free cash flow”

Petrofac (#PFC) – extension of $252m of banking facilities into next year

Petrofac (#PFC) – further costs on legacy contracts, argues “progress in extending its borrowing facilities”

Petrofac (#PFC) – offshore wind contract award and its largest framework agreement, no bottom-line specifics