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Petrofac

LSE:PFC
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PFC
LSE
£1B
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 173 days ago. More info.


Add to Portfolio Compare Print
  • Petrofac has significant price volatility in the past 3 months.
PFC Share Price and Events
7 Day Returns
2.1%
LSE:PFC
3.3%
GB Energy Services
1.5%
GB Market
1 Year Returns
-4.8%
LSE:PFC
-16.5%
GB Energy Services
-3%
GB Market
PFC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Petrofac (PFC) 2.1% -27.5% -21.4% -4.8% -46.4% -71%
GB Energy Services 3.3% -8.7% -17% -16.5% -16.9% -54%
GB Market 1.5% 3% 2.7% -3% 20.8% -3.8%
1 Year Return vs Industry and Market
  • PFC outperformed the Energy Services industry which returned -16.5% over the past year.
  • PFC underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3% 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 8.3%
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 8.8%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 0.41
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.41 (1 + (1- 20%) (120.19%))
0.804
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.804 * 8.77%)
8.28%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:PFC DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 357.73 318.17 205.20 268.50 323.00
Source Analyst x7 Analyst x7 Analyst x3 Analyst x2 Analyst x1
Present Value
Discounted (@ 8.28%)
330.38 271.37 161.64 195.33 217.01
Present value of next 5 years cash flows $1,175.72
LSE:PFC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $323.00 × (1 + 1.23%) ÷ (8.28% – 1.23%)
$4,636.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $4,636.23 ÷ (1 + 8.28%)5
$3,114.85
LSE:PFC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,175.72 + $3,114.85
$4,290.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,290.57 / 339.69
$12.63
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)
= $12.63 x 0.773
£9.77
Value per share (GBP) From above. £9.77
Current discount Discount to share price of £3.97
= -1 x (£3.97 - £9.77) / £9.77
59.4%

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
>50%
Share price is £3.97 vs Future cash flow value of £9.77
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, and 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 (2018-06-30) in USD $-0.34
LSE:PFC Share Price ** LSE (2019-02-18) in GBP £3.97
LSE:PFC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.293 $5.13
Europe Energy Services Industry PE Ratio Median Figure of 23 Publicly-Listed Energy Services Companies 17.87x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 814 Publicly-Listed Companies 15.87x

* 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)

= 5.13 ÷ -0.34

-15.01x

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

  • Petrofac is loss making, we can't compare its value to the Europe Energy Services industry average.
  • Petrofac is loss making, we can't compare the value of its earnings 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 -15.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
15.3%per year
Europe Energy Services Industry PEG Ratio Median Figure of 19 Publicly-Listed Energy Services Companies 0.74x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 579 Publicly-Listed Companies 1.26x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Petrofac, we can't assess if its growth is good value.
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 (2018-06-30) in USD $2.03
LSE:PFC Share Price * LSE (2019-02-18) in GBP £3.97
LSE:PFC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.293 $5.13
United Kingdom of Great Britain and Northern Ireland Energy Services Industry PB Ratio Median Figure of 16 Publicly-Listed Energy Services Companies 0.98x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,362 Publicly-Listed Companies 1.52x
LSE:PFC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 5.13 ÷ 2.03

2.53x

* 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 2/6, 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
15.3%
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 revenues are expected to decrease over the next 1-3 years, this is below 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 15.3%
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 35.2%
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*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 (7 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 5,809 275 1
2022-12-31 5,954 381 194 2
2021-12-31 5,970 372 229 4
2020-12-31 5,751 469 308 14
2019-12-31 5,669 462 291 15
2018-12-31 5,959 108 185 14
LSE:PFC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2015-12-31 6,844 669 -349
2015-09-30 6,865 707 -274

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Petrofac's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Petrofac's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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 (7 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 7 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 0.83 0.83 0.83 1.00
2022-12-31 0.65 0.72 0.57 2.00
2021-12-31 0.87 0.99 0.70 3.00
2020-12-31 0.88 0.99 0.65 9.00
2019-12-31 0.86 0.96 0.69 9.00
2018-12-31 0.47 0.84 0.34 6.00
LSE:PFC Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 -1.03
2015-09-30 -0.80

*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 3/6, 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 does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Petrofac's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Petrofac's 1-year growth to the Europe Energy Services industry average as it is not currently profitable.
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 7 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
2018-06-30 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
2012-03-31 6,038.96 579.86 311.90

*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.
  • It is difficult to establish if Petrofac has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Petrofac has efficiently used its assets last year compared to the Europe Energy Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Petrofac improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
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 0/6, 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.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x 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 7 months ago.

LSE:PFC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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
2012-03-31 1,269.31 66.66 862.07
  • Petrofac's level of debt (289.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (57.3% vs 289.6% today).
  • Debt is not well covered by operating cash flow (13.6%, less than 20% of total debt).
  • Petrofac is making a loss, therefore interest payments are not well covered by earnings.
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 2/6, 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
7.41%
Current annual income from Petrofac dividends. Estimated to be 7.86% next year.
If you bought £2,000 of Petrofac shares you are expected to receive £148 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 (1.99%).
  • Petrofac's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.25%).
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 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
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 5.3%

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 0.41 4.00
2020-12-31 0.41 14.00
2019-12-31 0.40 15.00
2018-12-31 0.39 14.00
LSE:PFC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-29 0.380 5.468
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
2009-03-09 0.254 2.052
2009-02-19 0.190 2.956

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.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Petrofac's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 17.1 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 whilst company is loss making.
  • 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:

2.3
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
17.1 yrs

Alastair Cochran

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

Allan Cockriel

TITLE
Chief Information Officer
TENURE
0.8 yrs

Jonathan Low

TITLE
Head of Investor Relations

Matt Barton

TITLE
Group General Counsel
TENURE
1.1 yrs

Tarek Massoud

TITLE
Chief Compliance Officer
TENURE
0.2 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
5.1 yrs

Craig Muir

TITLE
Chief Commercial Officer
TENURE
7 yrs
Board of Directors Tenure

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

1.7
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
Chairman
COMPENSATION
$228K
AGE
61
TENURE
0.8 yrs

Ayman Asfari

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

Alastair Cochran

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

Matthias Bichsel

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

George Pierson

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

David Davies

TITLE
Independent Non-Executive Director
AGE
63
TENURE
0.8 yrs

Andrea Abt

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

Sara Akbar

TITLE
Non-Executive Director
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
02. Oct 18 Buy David Davies Individual 10. Feb 18 10. Feb 18 757 £6.60 £4,996
02. Oct 18 Buy Andrea Abt Individual 10. Feb 18 10. Feb 18 757 £6.60 £4,996
02. Oct 18 Buy Matthias Bichsel Individual 10. Feb 18 10. Feb 18 757 £6.60 £4,996
02. Oct 18 Buy Sara Akbar Individual 10. Feb 18 10. Feb 18 757 £6.60 £4,996
02. Oct 18 Buy George Pierson Individual 10. Feb 18 10. Feb 18 757 £6.60 £4,996
02. Oct 18 Buy René Médori Individual 10. Feb 18 10. Feb 18 3,030 £6.60 £19,998
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
28. Mar 18 Buy Alastair Cochran Individual 28. Mar 18 28. Mar 18 22,853 £5.08 £115,997
21. Mar 18 Buy Ayman Asfari Individual 21. Mar 18 21. Mar 18 2,023,800 £4.94 £9,999,859
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

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 -

Should You Buy Petrofac Limited (LON:PFC) Now?

My valuation model shows that the intrinsic value for the stock is £8.76, but it is currently trading at UK£5.99 on the share market, meaning that there is still an opportunity to buy now. … What’s more interesting is that, Petrofac’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. … However, with an expected decline of -8.81% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Petrofac.

Simply Wall St -

Should You Follow This Trend For Petrofac Limited (LON:PFC)?

LSE:PFC Insider_trading Apr 25th 18 There were more Petrofac insiders that have bought shares than those that have sold. … Insiders that have recently bought more shares are: Name Management Board Total Annual Compensation Alastair Cochran ✔ ✔ $1,817,000 Ayman Asfari ✔ ✔ $802,000 Is Future Growth Outlook As Bullish? … Did Insiders Buy On Share Price Volatility?

Simply Wall St -

Does Petrofac Limited (LON:PFC) Have A Place In Your Portfolio?

Petrofac Limited (LSE:PFC) has returned to shareholders over the past 10 years, an average dividend yield of 4.00% annually. … View our latest analysis for Petrofac How I analyze a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Does it pay an annual yield higher than 75% of dividend payers? … Relative to peers, Petrofac has a yield of 5.18%, which is high for Energy Services stocks.Next Steps: Keeping in mind the dividend characteristics above, Petrofac is definitely worth considering for investors looking to build a dedicated income portfolio.

Simply Wall St -

How Financially Strong Is Petrofac Limited (LON:PFC)?

On top of this, PFC has generated cash from operations of US$422.00M in the last twelve months, resulting in an operating cash to total debt ratio of 19.85%, indicating that PFC’s operating cash is not sufficient to cover its debt. … At the current liabilities level of US$4.98B liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.12x. … Next Steps: At its current level of cash flow coverage, PFC has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Company Info

Map
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 engineering, procurement, construction, installation, and commissioning services to the onshore oil and gas industry. 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
£1,347,535,837
339,686,372
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
12,750
Petrofac employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 21:13
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/18
Last earnings filing: 2018/08/29
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


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.