Loading...

Petrofac

LSE:PFC
Snowflake Description

Reasonable growth potential with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PFC
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Energy
Company description

Petrofac Limited, an oilfield service company, provides facilities solutions to the oil and gas production and processing industry worldwide. The last earnings update was 22 days ago. More info.


Add to Portfolio Compare Print
PFC Share Price and Events
7 Day Returns
-6.9%
LSE:PFC
-2.8%
GB Energy Services
0.5%
GB Market
1 Year Returns
-20.4%
LSE:PFC
-18.1%
GB Energy Services
0.8%
GB Market
PFC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Petrofac (PFC) -6.9% 2.2% -9.4% -20.4% -43.2% -66.7%
GB Energy Services -2.8% -1.5% -1% -18.1% -20.3% -53.6%
GB Market 0.5% 3.6% 7.6% 0.8% 15.9% 6.2%
1 Year Return vs Industry and Market
  • PFC underperformed the Energy Services industry which returned -18.1% over the past year.
  • PFC underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.8% over the past year.
Price Volatility
PFC
Industry
5yr Volatility vs Market

Value

 Is Petrofac undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Petrofac to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Petrofac.

LSE:PFC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PFC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.088 (1 + (1- 20%) (51.4%))
1.358
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.36
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.358 * 5.96%)
9.32%

Discounted Cash Flow Calculation for LSE:PFC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Petrofac is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:PFC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.32%)
2019 384.23 Analyst x7 351.46
2020 324.21 Analyst x8 271.28
2021 272.55 Analyst x4 208.60
2022 296.00 Analyst x2 207.23
2023 276.56 Est @ -6.57% 177.11
2024 264.86 Est @ -4.23% 155.15
2025 257.99 Est @ -2.59% 138.24
2026 254.25 Est @ -1.45% 124.63
2027 252.62 Est @ -0.64% 113.26
2028 252.40 Est @ -0.08% 103.52
Present value of next 10 years cash flows $1,850.50
LSE:PFC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $252.40 × (1 + 1.23%) ÷ (9.32% – 1.23%)
$3,156.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,156.29 ÷ (1 + 9.32%)10
$1,294.49
LSE:PFC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,850.50 + $1,294.49
$3,144.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,144.99 / 336.85
$9.34
LSE:PFC Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:PFC)
0.773
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $9.34 x 0.773
£7.22
Value per share (GBP) From above. £7.22
Current discount Discount to share price of £4.86
= -1 x (£4.86 - £7.22) / £7.22
32.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Petrofac is available for.
Intrinsic value
33%
Share price is £4.86 vs Future cash flow value of £7.22
Current Discount Checks
For Petrofac to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Petrofac's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Petrofac's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Petrofac's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Petrofac's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PFC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.19
LSE:PFC Share Price ** LSE (2019-04-23) in GBP £4.86
LSE:PFC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.293 $6.28
United Kingdom of Great Britain and Northern Ireland Energy Services Industry PE Ratio Median Figure of 5 Publicly-Listed Energy Services Companies 15.22x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Petrofac.

LSE:PFC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PFC Share Price ÷ EPS (both in USD)

= 6.28 ÷ 0.19

33.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Petrofac is overvalued based on earnings compared to the GB Energy Services industry average.
  • Petrofac is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Petrofac's expected growth come at a high price?
Raw Data
LSE:PFC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
22.8%per year
Europe Energy Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Energy Services Companies 1.21x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:PFC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.16x ÷ 22.8%

1.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Petrofac is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Petrofac's assets?
Raw Data
LSE:PFC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.10
LSE:PFC Share Price * LSE (2019-04-23) in GBP £4.86
LSE:PFC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.293 $6.28
United Kingdom of Great Britain and Northern Ireland Energy Services Industry PB Ratio Median Figure of 16 Publicly-Listed Energy Services Companies 1.09x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:PFC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PFC Share Price ÷ Book Value per Share (both in USD)

= 6.28 ÷ 2.10

2.99x

* Primary Listing of Petrofac.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Petrofac is overvalued based on assets compared to the GB Energy Services industry average.
X
Value checks
We assess Petrofac's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Petrofac has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Petrofac expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Petrofac expected to grow at an attractive rate?
  • Petrofac's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Petrofac's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Petrofac's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PFC Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PFC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 22.8%
LSE:PFC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 0.3%
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 30.2%
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PFC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PFC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 333
2022-12-31 6,017 335 194 1
2021-12-31 5,874 413 297 9
2020-12-31 5,740 461 316 14
2019-12-31 5,705 434 311 15
LSE:PFC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,829 484 64
2018-09-30 5,942 384 -26
2018-06-30 6,054 284 -116
2018-03-31 6,225 353 -73
2017-12-31 6,395 422 -29
2017-09-30 6,753 413 15
2017-06-30 7,111 403 59
2017-03-31 7,492 527 30
2016-12-31 7,873 651 1
2016-09-30 7,713 688 -77
2016-06-30 7,552 724 -155
2016-03-31 7,198 697 -252

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Petrofac's earnings are expected to grow significantly at over 20% yearly.
  • Petrofac's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PFC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Petrofac Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PFC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.57 0.57 0.57 1.00
2021-12-31 1.00 1.13 0.92 6.00
2020-12-31 0.93 1.09 0.80 9.00
2019-12-31 0.91 1.00 0.85 7.00
LSE:PFC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.19
2018-09-30 -0.08
2018-06-30 -0.34
2018-03-31 -0.21
2017-12-31 -0.09
2017-09-30 0.04
2017-06-30 0.17
2017-03-31 0.09
2016-12-31 0.00
2016-09-30 -0.23
2016-06-30 -0.46
2016-03-31 -0.74

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Petrofac is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Petrofac's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Petrofac has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Petrofac performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Petrofac's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Petrofac's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Petrofac has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Petrofac has become profitable in the last year making it difficult to compare the Europe Energy Services industry average.
Earnings and Revenue History
Petrofac's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Petrofac Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PFC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,829.00 64.00 215.00
2018-09-30 5,941.50 -26.00 218.00
2018-06-30 6,054.00 -116.00 221.00
2018-03-31 6,224.50 -72.50 228.00
2017-12-31 6,395.00 -29.00 235.00
2017-09-30 6,753.00 15.00 232.00
2017-06-30 7,111.00 59.00 229.00
2017-03-31 7,492.00 30.00 235.00
2016-12-31 7,873.00 1.00 241.00
2016-09-30 7,712.50 -77.00 257.50
2016-06-30 7,552.00 -155.00 274.00
2016-03-31 7,198.00 -252.00 301.00
2015-12-31 6,844.00 -349.00 328.00
2015-09-30 6,865.00 -273.50 337.50
2015-06-30 6,886.00 -198.00 347.00
2015-03-31 6,563.50 -39.00 357.00
2014-12-31 6,241.00 120.00 367.00
2014-09-30 6,155.50 331.50 370.50
2014-06-30 6,070.00 543.00 374.00
2014-03-31 6,199.50 596.50 381.00
2013-12-31 6,329.00 650.00 388.00
2013-09-30 6,088.00 599.50 393.00
2013-06-30 5,847.00 549.00 398.00
2013-03-31 6,043.50 590.50 377.50
2012-12-31 6,240.00 632.00 357.00
2012-09-30 6,258.46 625.86 348.90
2012-06-30 6,276.92 619.71 340.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Petrofac has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Petrofac used its assets less efficiently than the GB Energy Services industry average last year based on Return on Assets.
  • Petrofac has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Petrofac's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Petrofac has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Petrofac's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Petrofac's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Petrofac is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Petrofac's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Petrofac's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Petrofac Company Filings, last reported 3 months ago.

LSE:PFC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,009.00 1,087.00 726.00
2018-09-30 1,009.00 1,087.00 726.00
2018-06-30 723.00 2,094.00 712.00
2018-03-31 723.00 2,094.00 712.00
2017-12-31 948.00 2,126.00 967.00
2017-09-30 948.00 2,126.00 967.00
2017-06-30 1,069.00 2,407.00 902.00
2017-03-31 1,069.00 2,407.00 902.00
2016-12-31 1,123.00 2,380.00 1,167.00
2016-09-30 1,123.00 2,380.00 1,167.00
2016-06-30 1,152.00 3,020.00 1,328.00
2016-03-31 1,152.00 3,020.00 1,328.00
2015-12-31 1,232.00 2,660.00 1,104.00
2015-09-30 1,232.00 2,660.00 1,104.00
2015-06-30 1,492.00 2,807.00 858.00
2015-03-31 1,492.00 2,807.00 858.00
2014-12-31 1,871.00 2,691.00 986.00
2014-09-30 1,871.00 2,691.00 986.00
2014-06-30 2,007.00 1,862.00 658.00
2014-03-31 2,007.00 1,862.00 658.00
2013-12-31 1,992.00 1,361.00 617.00
2013-09-30 1,992.00 1,361.00 617.00
2013-06-30 1,605.00 917.00 538.00
2013-03-31 1,605.00 917.00 538.00
2012-12-31 1,550.00 362.00 582.00
2012-09-30 1,550.00 362.00 582.00
2012-06-30 1,269.31 66.66 862.07
  • Petrofac's level of debt (107.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (68.6% vs 107.7% today).
  • Debt is well covered by operating cash flow (44.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).
X
Financial health checks
We assess Petrofac's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Petrofac has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Petrofac's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.05%
Current annual income from Petrofac dividends. Estimated to be 6.44% next year.
If you bought £2,000 of Petrofac shares you are expected to receive £121 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Petrofac's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Petrofac's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase Petrofac before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PFC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 4.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PFC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.38 1.00
2022-12-31 0.38 2.00
2021-12-31 0.42 11.00
2020-12-31 0.41 15.00
2019-12-31 0.39 14.00
LSE:PFC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-28 0.380 5.971
2018-08-29 0.380 5.568
2018-03-01 0.380 4.991
2017-09-27 0.565 9.224
2017-03-29 0.658 10.178
2017-02-22 0.658 5.859
2016-09-28 0.658 6.107
2016-04-27 0.658 6.076
2015-09-24 0.658 5.525
2015-02-25 0.658 4.873
2014-09-22 0.658 5.073
2014-02-26 0.658 3.177
2013-08-27 0.650 3.082
2013-02-27 0.640 3.128
2012-08-13 0.420 1.644
2012-03-05 0.546 2.214
2012-03-02 0.546 2.174
2011-03-07 0.438 1.933
2011-03-04 0.438 1.835
2010-03-08 0.358 1.730
2010-03-01 0.358 2.194
2009-04-24 0.254 1.878

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Petrofac's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Petrofac's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Petrofac afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Petrofac has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Petrofac's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ayman Asfari
COMPENSATION $1,946,000
AGE 60
TENURE AS CEO 17.3 years
CEO Bio

Mr. Ayman Asfari has been the Group Chief Executive of Petrofac Limited since January 2002. Mr. Asfari joined Petrofac in 1991 to establish Petrofac International. He Works with the Board to set the strategy of the Group, and takes ultimate responsibility for the operational and financial performance of Petrofac. He also has a close involvement in the approach to corporate responsibility, including health, safety, ethical standards, security and the environment. He served as the Chief Executive Officer of Petrofac International until January 2002. He served as the Managing Director of a major civil and mechanical construction business based in Oman. He has more than 30 years’ experience in the oil and gas industry. He has been a Director at Petrofac Limited since January 11, 2002. He serves as a Director of Petrofac FPSO Holding Limited. He is the Founder and Chairman of the Asfari Foundation. He is a member of the board of trustees of the American University of Beirut and member of the Senior Panel of Advisors of Chatham House. He holds an M.Sc., in Civil and Urban Engineering in 1980 from the University of Pennsylvania.

CEO Compensation
  • Ayman's compensation has increased in line with Petrofac recently becoming profitable.
  • Ayman's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Petrofac management team in years:

2.5
Average Tenure
56.5
Average Age
  • The tenure for the Petrofac management team is about average.
Management Team

Ayman Asfari

TITLE
Group Chief Executive & Executive Director
COMPENSATION
$2M
AGE
60
TENURE
17.3 yrs

Alastair Cochran

TITLE
CFO & Executive Director
COMPENSATION
$1M
AGE
48
TENURE
2.5 yrs

Allan Cockriel

TITLE
Chief Information Officer
TENURE
1 yrs

Jonathan Low

TITLE
Head of Investor Relations

Matt Barton

TITLE
Group General Counsel
TENURE
1.3 yrs

Tarek Massoud

TITLE
Chief Compliance Officer
TENURE
0.3 yrs

Alison Flynn

TITLE
Group Head of Communications

Des Thurlby

TITLE
Group Director of Human Resources
AGE
53

Rob Jewkes

TITLE
Chief Operating Officer of Integrated Energy Services
AGE
62
TENURE
5.3 yrs

Craig Muir

TITLE
Chief Commercial Officer
TENURE
7.2 yrs
Board of Directors Tenure

Average tenure and age of the Petrofac board of directors in years:

1.9
Average Tenure
60
Average Age
  • The average tenure for the Petrofac board of directors is less than 3 years, this suggests a new board.
Board of Directors

René Médori

TITLE
Non-Executive Chairman
COMPENSATION
$228K
AGE
61
TENURE
0.9 yrs

Ayman Asfari

TITLE
Group Chief Executive & Executive Director
COMPENSATION
$2M
AGE
60
TENURE
17.3 yrs

Alastair Cochran

TITLE
CFO & Executive Director
COMPENSATION
$1M
AGE
48
TENURE
2.5 yrs

Matthias Bichsel

TITLE
Senior Independent Director
COMPENSATION
$176K
AGE
64
TENURE
0.9 yrs

George Pierson

TITLE
Independent Non-Executive Director
COMPENSATION
$192K
AGE
56
TENURE
2.9 yrs

David Davies

TITLE
Independent Non-Executive Director
AGE
63
TENURE
0.9 yrs

Andrea Abt

TITLE
Non-Executive Director
COMPENSATION
$176K
AGE
58
TENURE
2.9 yrs

Sara Akbar

TITLE
Non-Executive Director
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Petrofac insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
02. Apr 19 Buy David Davies Individual 02. Apr 19 02. Apr 19 998 £5.01 £4,998
02. Apr 19 Buy Alastair Cochran Individual 02. Apr 19 02. Apr 19 23,242 £4.94 £114,723
02. Apr 19 Buy Andrea Abt Individual 02. Apr 19 02. Apr 19 998 £5.01 £4,998
02. Apr 19 Buy Matthias Bichsel Individual 02. Apr 19 02. Apr 19 998 £5.01 £4,998
02. Apr 19 Buy Sara Akbar Individual 02. Apr 19 02. Apr 19 998 £5.01 £4,998
02. Apr 19 Buy George Pierson Individual 02. Apr 19 02. Apr 19 998 £5.01 £4,998
02. Apr 19 Buy René Médori Individual 02. Apr 19 02. Apr 19 3,993 £5.01 £19,997
26. Mar 19 Buy Ayman Asfari Individual 26. Mar 19 26. Mar 19 105,750 £4.70 £496,539
03. Jul 18 Buy David Davies Individual 03. Jul 18 03. Jul 18 415 £5.82 £2,416
03. Jul 18 Buy Andrea Abt Individual 03. Jul 18 03. Jul 18 858 £5.82 £4,995
03. Jul 18 Buy Matthias Bichsel Individual 03. Jul 18 03. Jul 18 858 £5.82 £4,995
03. Jul 18 Buy Sara Akbar Individual 03. Jul 18 03. Jul 18 858 £5.82 £4,995
03. Jul 18 Buy George Pierson Individual 03. Jul 18 03. Jul 18 858 £5.82 £4,995
03. Jul 18 Buy René Médori Individual 03. Jul 18 03. Jul 18 2,104 £5.82 £12,249
X
Management checks
We assess Petrofac's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Petrofac has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Could Petrofac Limited's (LON:PFC) Investor Composition Influence The Stock Price?

If you want to know who really controls Petrofac Limited (LON:PFC), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … View our latest analysis for Petrofac

Simply Wall St -

Does Petrofac Limited (LON:PFC) Create Value For Shareholders?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Petrofac has a return on equity of 6.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's What Petrofac Limited's (LON:PFC) ROCE Can Tell Us

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Petrofac Limited's (LON:PFC) Balance Sheet Strong Enough To Weather A Storm?

Investors are always looking for growth in small-cap stocks like Petrofac Limited (LON:PFC), with a market cap of UK£1.5b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Is Petrofac Limited (LON:PFC) Overpaying Its CEO?

Ayman Asfari has been the CEO of Petrofac Limited (LON:PFC) since 2002. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Ayman Asfari's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Many Insiders Bought Petrofac Limited (LON:PFC) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So before you buy or sell Petrofac Limited (LON:PFC), you may well want to know whether insiders have been buying or selling. … Happily, we note that in the last year insiders bought 2.06m shares for a total of UK£10m

Simply Wall St -

Is Petrofac Limited's (LON:PFC) CEO Pay Fair?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Ayman Asfari's Compensation Compare With Similar Sized Companies. … So Ayman Asfari receives a similar amount to the median CEO pay, amongst the companies we looked at.

Simply Wall St -

Could Petrofac Limited's (LON:PFC) Investor Composition Impacts Your Returns?

In this analysis, my focus will be on developing a perspective on Petrofac Limited’s (LON:PFC) latest ownership structure, a less discussed, but important factor. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Check out our latest analysis for Petrofac

Simply Wall St -

Why You Need To Look At This Factor Before Buying Petrofac Limited (LON:PFC)

PFC’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … As a result, this aspect of PFC indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.

Simply Wall St -

Who Owns Most Of Petrofac Limited (LON:PFC)?

While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity. … Private Company Ownership Potential investors in PFC should also look at another important group of investors: private companies, with a stake of 5.09%, who are primarily invested because of strategic and capital gain interests. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: I suggest investors seek some degree of margin of safety due to high institutional ownership in PFC, in particular due to the strong presence of active hedge fund investors.

Simply Wall St -

Company Info

Description

Petrofac Limited, an oilfield service company, provides facilities solutions to the oil and gas production and processing industry worldwide. The company operates through three segments: Engineering & Construction; Engineering & Production Services; and Integrated Energy Services. The Engineering & Construction segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Engineering & Production Services segment offers concept, feasibility, and front-end engineering and full project delivery, as well as a range of operations, maintenance, and engineering services for onshore and offshore projects. The Integrated Energy Services segment provides an integrated service for clients under flexible commercial models that are aligned with their requirements in projects, including upstream developments, related energy infrastructure projects, and investments. Petrofac Limited was founded in 1981 and is headquartered in St Helier, Jersey.

Details
Name: Petrofac Limited
PFC
Exchange: LSE
Founded: 1981
£1,635,396,204
336,847,828
Website: http://www.petrofac.com
Address: Petrofac Limited
44 Esplanade,
St Helier,
JE4 9WG,
Jersey
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PFC Ordinary Shares London Stock Exchange GB GBP 04. Oct 2005
OTCPK POFC.F Ordinary Shares Pink Sheets LLC US USD 04. Oct 2005
DB P2F Ordinary Shares Deutsche Boerse AG DE EUR 04. Oct 2005
BMV PFC N Ordinary Shares Bolsa Mexicana de Valores MX MXN 04. Oct 2005
BATS-CHIXE PFCL Ordinary Shares BATS 'Chi-X Europe' GB GBP 04. Oct 2005
OTCPK POFC.Y UNSPONSORD ADR Pink Sheets LLC US USD 30. Mar 2011
Number of employees
Current staff
Staff numbers
11,500
Petrofac employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 20:54
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.