Danone&Faber, TF1&M6, Petrofac
17 March 2021
Petrofac (5% of the fund): on Monday, the national oil company of the United Arab Emirates declared that it would no longer work with Petrofac until the Serious Fraud Office is closed (see my billet of January 15). This is a major blow for Petrofac as it is one of its main clients. The stock immediately lost everything it had gained since the end of January and is now trading below 100. This news shows that the wait-and-see strategy developed by Petrofac since the beginning of the investigation in 2017 is not working: certainly the SFO has not attacked the company, but customers are leaving. It is therefore more than urgent that the new boss, Samy Iskander, finds an agreement with the SFO to close this case. There are several similar precedents (Rolls Royce recently). We had a conversation about this with Petrofac yesterday (in total we hold 1.7% of the company's capital - enough to make ourselves heard).
Have a great week,
Charles
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