Wood Group (john) Share Discussion Threads

[w1ndjammer] 20/2/2020 15:13

yep at last we should get going now. been nice to load up sub 370 though....

WJ.

[gateside] 20/2/2020 10:34

It's trying to break up from 400pAny uptick in the oil price and this should be up and away!

[ferries5] 15/2/2020 13:25

Full-year trading results for the year ended 31 December 2019

Time: 9.00am 10th March (early registration is advised from 08.30am and photographic ID is required)
Location: London Stock Exchange, 10 Paternoster Square, EC4M 7LS

A live webcast of the event will be available. Please register to watch it via the link below.
Webcast registration

[gateside] 06/2/2020 08:32

Well the Market seems to like it.

[puffet] 06/2/2020 08:11

That's the deal confirmed to sell WGIS to Kaefer for £80M - not massive inroads into the debt and a loss of a good business stream.

[puffet] 30/1/2020 11:38

Total (E&P) awards for their north sea contracts will be formally announced shortly - its NOT good news for Wood.

[puffet] 21/1/2020 10:25

The fire sale continues and the deal for WGIS will be announced in the next few days. Bit of cash to pay of some debt but another valuable asset sold off which made them a differentiator in the market.

[ferries5] 19/1/2020 18:28

Full article


Shares in John Wood Group have risen after the oilfield services provider said it expects higher core earnings for 2019, with a strong performance from its engineering services unit offsetting slowing onshore drilling demand in the US.

In an update to the stock exchange on Thursday, the firm said it expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to between $850 million (£652m) and $860 million for the year ending 31 December, compared with $693.8 million a year earlier.

Read More: Energy group Wood to sell nuclear arm for £250m

Wood Group shares rose as much as 9.19 per cent in morning trading to 404.4p following the trading update.

“Our full year 2019 results will demonstrate earnings growth, margin improvement and strong operational cash generation, resulting in a reduction in net debt,” said chief executive Robin Watson.

Wood said it expects revenue of around $10bn for 2019, in line with the previous year, reflecting “generally robust activity”, with better than anticipated cash generation in the second half helping reduce net debt to below $1.5bn.

Watson said the company “continue[s] to make good progress on portfolio rationalisation. Looking ahead, our business is well positioned across its energy and built environment markets and we expect to deliver earnings growth in 2020.”

Wood also announced this morning that Birgitte Brinch Madsen would join the company as a non-executive director.

“It’s been a challenging 12 months for Wood, with a volatile oil and gas environment seeing the company – along with other services firms – squeezed by some of the larger operators,” said Brewin Dolphin senior investment manager David Barclay.

Read More: Wood Group boosts first-half profit as it looks to cut debt pile

“While Wood has taken steps to broaden its business, the levels of debt it incurred in the process have weighed on the shares – they have fallen around one-third since the beginning of 2019,” he added.

“There’s a slight reduction in debt in today’s update, but the market would have been looking for more concrete progress.”
Share

[puffet] 16/1/2020 09:42

“It’s been a challenging 12 months for Wood, with a volatile oil and gas environment seeing the company – along with other services firms – squeezed by some of the larger operators,” said Brewin Dolphin senior investment manager David Barclay.
“While Wood has taken steps to broaden its business, the levels of debt it incurred in the process have weighed on the shares – they have fallen around one-third since the beginning of 2019,” he added.
“There’s a slight reduction in debt in today’s update, but the market would have been looking for more concrete progress.”

[togglebrush] 16/1/2020 08:31

FWIW Stats for Daily Trades from 31 Dec 2018 based on ADVFN
'
________________Price_____Volume
Q3______________521.25____3,703,640
Median__________446.40____2,839,766
Q1______________393.75____2,145,924
'
Yesterday_________________2,391,772
Max 26 Nov 2019__________50,226,105
Price is based on OHLC

[ferries5] 16/1/2020 08:23

This should help net debt.

We continue to make good progress on our portfolio rationalisation strategy as we focus on premium, differentiated, higher margin activities. The agreed sale of our nuclear business for c$325m is on track to complete in Q1 2020 and will accelerate progress to our target leverage. We are also active on other sales processes

[ferries5] 16/1/2020 08:13

Market has reacted well to results. But still 8.7% of shares held by short sellers +
volumes of shares traded have been below average recently.

[puffet] 16/1/2020 07:37

Biggest issue for me is what is the Net Debt, it was $1.5bn now update says below $1.5bn need to see how much they have reduced it down to? Without a major reduction I don't see anything else here to really change the mood.

[togglebrush] 16/1/2020 07:05

Trading Update reads well at first reading
'
Highlights(1)

-- Adjusted EBITDA(2, 3) of $850m to $860m and operating profit before
exceptionals of $410m to $420m, in line with current market expectations(4)
-- Like for like(5) : adjusted EBITDA (pre-IFRS 16) up c6% and operating
profit before exceptionals (pre-IFRS 16) up c20%; including c$60m
of cost synergy delivery
-- Revenue of around $10bn, in line with 2018, reflecting generally
robust activity
-- Better than anticipated cash generation in H2 delivering reduction
in net debt(6) to below $1.5bn at 31 December 2019 (2018: $1.51bn)
-- Previously announced disposal of nuclear business for c$325m on
track to complete in Q1 2020
-- 2020 Outlook: Modest revenue growth and margin improvement strategy
supporting growth in adjusted EBITDA

[puffet] 15/1/2020 16:33

Trading update due tomorrow. Going to be a critical statement for the future of this current management.

[carer] 14/1/2020 13:48

It will probably go down to 3.50 by the look of it.

[puffet] 09/1/2020 07:16

Gather the sale of WGIS (fab maintenance arm) is imminent so the fire sale continues.

[typo56] 08/1/2020 19:28

Because it could potentially block the sale.

Back in August WG. said, "Closing is conditional upon, among other things, obtaining anti-trust clearance from the Competition and Markets Authority ("CMA") and is currently anticipated before the end of Q1 2020."

[hmgouda] 08/1/2020 18:04

Why it would affect Wood, it should br positive impact rather than negative. As more money will be coming to the company.

[typo56] 08/1/2020 15:28

Is the CMA's announcement re the nuclear unit anything to do with it?

[w1ndjammer] 08/1/2020 14:52

been looking for a chance to buy in here, so just took a few, think
they might be looking for 350p so will build up slowly.

Hope i didn`t miss anything........

The offer for SXX came just in time, nice 70% profit.

WJ.