LSE:PFC

Stock Analysis Report

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Executive Summary

Petrofac Limited, an oilfield service company, provides services to the oil and gas production and processing industry worldwide.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Petrofac's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PFC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

PFC

6.3%

GB Energy Services

2.2%

GB Market


1 Year Return

-50.5%

PFC

-42.2%

GB Energy Services

-10.0%

GB Market

Return vs Industry: PFC underperformed the UK Energy Services industry which returned -41.9% over the past year.

Return vs Market: PFC underperformed the UK Market which returned -9.5% over the past year.


Shareholder returns

PFCIndustryMarket
7 Day10.1%6.3%2.2%
30 Day8.1%17.6%9.6%
90 Day-27.8%-24.1%-2.6%
1 Year-49.3%-50.5%-40.9%-42.2%-5.7%-10.0%
3 Year-33.3%-41.5%-55.5%-59.2%-1.8%-13.8%
5 Year-71.0%-77.2%-65.9%-70.6%15.5%-10.2%

Price Volatility Vs. Market

How volatile is Petrofac's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Petrofac undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFC (£2.04) is trading below our estimate of fair value (£7.33)

Significantly Below Fair Value: PFC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PFC is poor value based on its PE Ratio (11.8x) compared to the Energy Services industry average (11.2x).

PE vs Market: PFC is good value based on its PE Ratio (11.8x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: PFC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PFC is overvalued based on its PB Ratio (1.4x) compared to the GB Energy Services industry average (0.4x).


Next Steps

Future Growth

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

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFC's forecast earnings growth (17.6% per year) is above the savings rate (1.2%).

Earnings vs Market: PFC's earnings (17.6% per year) are forecast to grow slower than the UK market (20.9% per year).

High Growth Earnings: PFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: PFC's revenue is expected to decline over the next 3 years (-6.6% per year).

High Growth Revenue: PFC's revenue is forecast to decline over the next 3 years (-6.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFC's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Petrofac performed over the past 5 years?

49.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFC has a large one-off loss of $191.0M impacting its December 31 2019 financial results.

Growing Profit Margin: PFC's current net profit margins (1.3%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: PFC's earnings have grown significantly by 49.5% per year over the past 5 years.

Accelerating Growth: PFC's earnings growth over the past year (14.1%) is below its 5-year average (49.5% per year).

Earnings vs Industry: PFC earnings growth over the past year (14.1%) exceeded the Energy Services industry 8%.


Return on Equity

High ROE: PFC's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Petrofac's financial position?


Financial Position Analysis

Short Term Liabilities: PFC's short term assets ($4.9B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: PFC's short term assets ($4.9B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: PFC's debt to equity ratio (110.7%) is considered high.

Reducing Debt: PFC's debt to equity ratio has increased from 92.2% to 110.7% over the past 5 years.

Debt Coverage: PFC's debt is well covered by operating cash flow (23.5%).

Interest Coverage: PFC's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

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

6.90%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PFC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PFC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PFC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PFC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PFC is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PFC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Ayman Asfari (61yo)

18.42yrs

Tenure

US$1,233,000

Compensation

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 strate ...


CEO Compensation Analysis

Compensation vs Market: Ayman's total compensation ($USD1.23M) is about average for companies of similar size in the UK market ($USD1.15M).

Compensation vs Earnings: Ayman's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ayman Asfari
Group Chief Executive & Executive Director18.42yrsUS$1.23m19.39% $132.9m
Alastair Cochran
CFO & Executive Director3.67yrsUS$1.39m0.039% $269.8k
Allan Cockriel
Chief Information Officer2.17yrsno datano data
Jonathan Low
Head of Investor Relationsno datano datano data
Matthew Barton
Group General Counsel2.42yrsno datano data
Tarek Massoud
Chief Compliance Officer1.5yrsno datano data
Alison Flynn
Group Director of Communications & Sustainability0.42yrno datano data
John Pearson
COO of Engineering & Production Services and Chief Corporate Development Officerno datano datano data
Des Thurlby
Group Director of Human Resourcesno datano datano data
Paolo Bigi
Regional Managing Director of Engineering & Construction4.42yrsno datano data

2.4yrs

Average Tenure

54yo

Average Age

Experienced Management: PFC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ayman Asfari
Group Chief Executive & Executive Director18.42yrsUS$1.23m19.39% $132.9m
Alastair Cochran
CFO & Executive Director3.67yrsUS$1.39m0.039% $269.8k
Francesca Di Carlo
Non-Executive Director1.08yrsUS$63.00k0.0017% $11.8k
René Médori
Independent Non-Executive Chairman2.08yrsUS$412.00k0.012% $78.9k
George Pierson
Independent Non-Executive Director4.08yrsUS$116.00k0.027% $181.9k
Sara Akbar
Non-Executive Director2.42yrsUS$97.00k0.0032% $21.9k
Matthias Bichsel
Senior Independent Director2.08yrsUS$135.00k0.0032% $21.9k
Andrea Abt
Independent Non-Executive Director4.08yrsUS$97.00k0.0032% $21.9k
David Davies
Independent Non-Executive Director2.08yrsUS$116.00k0.0074% $50.9k

2.4yrs

Average Tenure

61yo

Average Age

Experienced Board: PFC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PFC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Petrofac Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Petrofac Limited
  • Ticker: PFC
  • Exchange: LSE
  • Founded: 1981
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£685.149m
  • Shares outstanding: 335.86m
  • Website: https://www.petrofac.com

Number of Employees


Location

  • Petrofac Limited
  • 44 Esplanade
  • Saint Helier
  • JE4 9WG
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFCLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2005
P2FDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2005
POFC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2005
PFCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2005
POFC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2011

Biography

Petrofac Limited, an oilfield service company, provides services 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 and related energy infrastructure projects. Petrofac Limited was founded in 1981 and is based in St Helier, Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 21:28
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.