Wood Group (john) Share Discussion Threads

[sajjad017] 15/11/2010 22:58

daily mail reports halliburton hunting for j wood @595p

[saget] 04/11/2010 09:12

Looks like the 600bn dollars of QE from the Federal Reserve is going to push oil and oil services higher. IMHO.

[philo124] 13/10/2010 00:18

Target price upped to £5.00 on 12th by, i forgot who, but there was a note out.

[dontrader] 07/10/2010 09:17

With GE buying Dresser and having a bid for Wellstream turned down I suspect that the strong price run is in part supported by bid rumours.

Don

[craigends] 21/9/2010 15:46

what's up - other than SP!

[philo124] 27/8/2010 17:23

Good Finish

[philo124] 25/8/2010 08:19

Goldmans have Conviction Buy ON this stock with a 535p price target.

[philo124] 24/8/2010 19:48

Thanks, and downgrade. Still holding waiting for Amec Bid abd Oil to get to $90
again which it will someday.

[nellie1973] 24/8/2010 18:35

Broker upgrade

[philo124] 02/8/2010 16:44

Back up tp approaching £4.00

[volsung] 30/4/2010 15:42

Oh well stopped out for no gain. Shudda sold at £4 but there ya go. Might be back when it looks a bit safer.

[volsung] 28/4/2010 16:38

Unpleasant few days but hope to buy more on the turn

[redips2] 24/4/2010 18:44

JKX dropped--b.gg.r, hey ho---SMDR maybe the answer.

[volsung] 21/4/2010 14:47

One of my regrets is leaving DGO saget:(. redips I'm tempted by AFR but seems to top out at 104p all the time. Why? I'll watch a while yet.

[redips2] 20/4/2010 19:26

Hi volie----you should think about getting back into AFR again, bit cheap me thinks, they may be in for that rise soon---[sorry for this O/T stuff guys.]

[philo124] 20/4/2010 18:41

Buy rating by UBS Heavy volume!

[saget] 20/4/2010 16:01

volsung - so you've abandoned us on DGO to come here, eh?
Anyway I previously bought these at around 390p (around 2 years ago) and I've now broken even.

Hurrah!

[jack parlabane] 20/4/2010 14:34

It certainly is.

Any idea why??

C'mon the £4 barrier!!!!

[volsung] 20/4/2010 13:18

This is nice

[volsung] 14/4/2010 16:34

Wednesday, April 14, 2010

All is well for long term earnings at John Wood group
by Fat Prophets

With the average price of oil during 2009 60% lower than it was in 2008, it was no great shock that capital expenditure across the oil and gas industry during the year fell by 15%. The situation now is somewhat different. The price of oil has strengthened and confidence is returning to the industry. Good news then for energy focussed support services group John Wood Group (LSE, WG).

Looking at Wood's share price performance so far this year it is clear that investors are tuning in to the companies ability to add new contracts and renew existing arrangements. 5 weeks ago the company released full year results which provided plenty of cause for optimism. The group's year on year fall in revenue was just 6% with revenue coming in at US$4.9 billion. Underlying earnings fell by 19% aided by a fall in the EBITA margin from 8.4% in 2008 to 7.3% in 2009. Nevertheless, given the economic backdrop these results were relatively resilient.

So what will 2010 look like for John Wood Group?

A lot of course depends on oil. In 2010 alone oil demand is set to make up the falls it has experienced in both 2009 and 2008. The International Energy Agency (IEA) has also recently been increasing predictions for demand on the back of emerging market growth showing that the oil price has solid underpinnings.

The oil price recently surged past US$87 per barrel– putting the price of the commodity at an 18 month high – and a return to triple digits is gathering momentum. Doubters may say that there is spare capacity at the present time however if the market believes this will rapidly disappear in the future, oil prices may nevertheless still rise.

The most pivotal business division for Wood is its Engineering and Production Facilities (E&PF) which provided around two thirds of revenue and underlying earnings last year. Whilst the division's revenue remained stable, earnings fell because of a contraction in margins. This is because the high margin development related activities were cut back by clients as they were less confident pursuing new oil projects would be worthwhile. However, with a buoyant oil price development spending look set to recover helping to boost profits for Wood Group.

The other two divisions are Well Support and Gas Turbine Services. Well Support focuses on oil and gas reservoirs in order to enhance production rates and economic recovery - clearly a critical service for clients, the unit had the highest EBITA margin of all the divisions. Gas Turbine Services meanwhile is also poised for long term growth with gas the greenest of the fossil fuels for power generation.

Overall, looking at the long term earnings picture for John Wood group, all is well. The group's focus on expanding the group's international reach and broadening the range of services provided will in our view underpin robust share price performance. Whilst management will ramp up the company's positions in the Middle East, Africa and Asia Pacific, the group is developing capabilities in renewables and CO2 handling as well as further technologies for offshore and US shale.

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[volsung] 02/4/2010 11:30

We must be stockbrothers redips :)

[redips2] 01/4/2010 19:50

'Volie' again!! i recon you are following me! just been on lam to reply :)

[volsung] 01/4/2010 13:40

Verry nice. Ilike this