BullDog wrote:Interested to hear where you think PFC might win their next significant contract? I think their main sources of previously successful major bids will remain in fact closed despite what official sources are saying. Nobody "has" to go to Petrofac. Everyone understands that.
You're right about the war of attrition. The competitors need to do nothing. The work will flow in their direction anyway. I am sad to be so negative about a company I used to like a lot. But I don't see anyway PFC is going to win any really significant work going forward. The competition is more than intense and the levers PFC need to pull to gain work are not reachable for them to pull.
Sad really and I would like to be wrong about PFC.
I don't know about "major" contracts, I was thinking of new contracts in general as they seem to be well regarded in the industry. The concern is that they feel obliged to bid at low margins to "win" work. All these contractors chasing for work just to keep the order books filled is reminiscent of the likes of Carillion & Kier. I'm "down" a chunk of change on my early investment in PFC (a couple of weeks before the SFO* investigation announced - bad timing !!). What have I learned.....don't invest in low margin businesses. My inexperience in early 2017 had me fixed on the "yield on offer" rather than the fundamentals of the business. Would I invest in PFC (or similar) today ?....absolutley no way! I licked my wounds on PFC a while ago and moved on.
(*) I said FCA investigation in a previous post..apologies, I meant SFO.