MALCOLM GRAHAM-WOOD VSA CAPITAL
All the fundamentals are still there for Petrofac. The contracts have just been delayed and will come in 2015, but the market hates that as it’s not good for profits in the short term. It’s still a really good-quality company, but its earnings get hit if there are project delays.
CHRISTINE TISCARENO STANDARD & POOR’S
I was flabbergasted by how much the share price went down today and I think it’s because the company isn’t very well understood. The contracts are being delayed but they’re also being improved and expanded. They had already warned of the project delays so it shouldn’t have been a shock.
ANDREW DOBBING JP MORGAN
The statement is disappointing news for Petrofac’s medium-term earnings. Our forecasts for 2015 are aligned with the company’s acknowledgment that achieving its 2015 earnings target will be dependent on the timing of potential [new contract] awards during 2014.