Wood Group (john) Share Discussion Threads

[adae] 29/8/2022 19:01

Amazing how you read what you want to read. Some will have read this for the CEO's forecast:

" o Revenue between $5.2 billion and $5.5 billion
o Adjusted EBITDA between $370 million and $400 million"


Others this:

" o Revenue between $5.2 billion and $5.5 billion
o Adjusted EBITDA between $370 million and $400 million"
- Cash outflow another multi hundreds of millions.


Place your bets, but hope there's a few more divisions they can flog in future.

[ashkv] 29/8/2022 18:39

Market gives Wood Group a market cap of USD1 billion even at current price... that is not exactly conveying it is going bust... also volumes are very low for shares...only one recent RNS about an II selling and that too not much...

Market is just waiting for the Built Environment business sale to close / cash to arrive and is sitting on the sidelines until then... letting share price down so weak hands get scared... make your entry Chute01.... WG could bounce 20-30% on a day based on any serious buying!!!

[chutes01] 29/8/2022 18:19

Market is saying this goes bust

[ashkv] 29/8/2022 15:38

From TipRanks - Based on 3 Wall Street analysts offering 12 month price targets for John Wood in the last 3 months. The average price target is 288.33p with a high forecast of 320.00p and a low forecast of 270.00p. The average price target represents a 124.29% change from the last price of 128.55p.

Post HY 2022 Results Barclays has Wood Group at 320p....
24-Aug-22 Barclays Overweight 320.00 320.00 Reiteration

JP Morgan has also changed rating to "Not Rated" .... that is an indication that they are working on a deal associated with Wood Group....
25-Aug-22 JP Morgan Cazenove Not-rated - - Reiteration
23-May-22 JP Morgan Cazenove Overweight 285.00 306.00 Reiteration

[ashkv] 29/8/2022 15:36

Oil is up 2.5% UK Bank holiday... unlike indexes and a large number of asset classes that sold off... Energy reliant firms should do well...


Anything can happen but massive sell off in WG past few days doesn't even amount to 1% of shares outstanding traded....

[chutes01] 29/8/2022 13:04

Market turmoil will add to woods woes this week, likely to see below 100p for starters.
watch out for trades from thurs 1/9, as watson will be able to start offloading his holdings.

Recently, columbus energy merged with bahamas pet to drill off cuba.
leo Koot, ex taqa, resigned from directorship the day he realised well was a duster and sold his £800K holding the same day
Abject incompetence continues at wood as it pumps shareholder cash off to ligitation and fines.
May be the end as advisors look to clear the decks and wipe out any limited residual shareholder value which may remain.

[chutes01] 28/8/2022 19:15

40 Mio PA to SFO
Circa 100 Mio to Texas claim

I believe advisors may try to eliminate existing shareholders to tidy this up quickly and rebase

[ashkv] 28/8/2022 14:22

The answer is, as a wise old SAC trader once told me, because “this game is rigged to the upside”. The upshot here is that if one is underweight stocks right now, set a target price or range where you will add equity exposure and do your best to stick to it.
(SAC is the original firm of Steve Cohen - Hedge Fund Legend of Legends)

[ashkv] 28/8/2022 14:04

25-Aug-22 JP Morgan Cazenove Not-rated - - Reiteration
23-May-22 JP Morgan Cazenove Overweight 285.00 306.00 Reiteration

[ashkv] 28/8/2022 14:03

JP Morgan has also changed rating to "Not Rated" .... that is an indication that they are working on a deal associated with Wood Group.... Stay long stay strong....

[ashkv] 28/8/2022 14:00

Post HY Results Barclays has Wood Group at 320p....

24-Aug-22 Barclays Overweight 320.00 320.00 Reiteration

[ashkv] 28/8/2022 13:58

This Chutes is really something special.... this is the time to Buy Wood Group - 15 year lows, Price To Book approaching 0.25... unreal...

Divestment of Built Environment Division guided to close in the next 4 weeks - and Wood Debt free / very minimal debt when this event transpires...


The Asbestos claims are legacy / predictable / provisioned for...

$6 Billion Revenue company with billions of liquidity available to it... in an industry which is on the upswing....


ABSOLUTELY NEAR ZERO CHANCE OF BANKRUPTCY...


VERY LOW LIQUIDITY SO PRICE IS MANIPULATED... WILL SUDDENLY PERK UP AND ROAR..... Average in is my strategy....

[ashkv] 28/8/2022 13:55

From TipRanks - Based on 3 Wall Street analysts offering 12 month price targets for John Wood in the last 3 months. The average price target is 288.33p with a high forecast of 320.00p and a low forecast of 270.00p. The average price target represents a 124.29% change from the last price of 128.55p.

[chutes01] 28/8/2022 09:37

Markets about to get quite choppy, this will see wood below 100p with court case uncertainty and current sentiment.
No shorts here, may be a buy at 50p for the brave.
Not one for widows and orphans though.
Very sad that Ian Wood can't come out and defend his management and directors.

[chutes01] 28/8/2022 09:35

I would be wary, this appears on verge of bankruptcy after SFO fine - &40 mio per year, and a string of court cases, latest being in Texas for $700 mio.
AFW acquisition done with no DD.

SP certainly going below 100p here, has Watson and co. completely trashed a £5 Billion entity ?

[pogue] 28/8/2022 07:55

I couldn't help myself took filter off out if boredom

[wigwammer] 27/8/2022 17:52

I assumed everyone had chutes on filter.

[pogue] 27/8/2022 11:36

chutes
you are a sad idiot, Carillion was in massive debt not a soon to be practically debt free company facing a boom in its services after a long drought.

[ashkv] 26/8/2022 20:37

From the FT Investors’ Chronicle: PureTech, RM, Wood Group
Companies analysis from our sister publication

HOLD: Wood Group (WG.)
The energy services and engineering group is looking to upcoming divestment to clear its debt pile, writes Alex Hamer.

A year into this supply-constrained, high-demand period for oil and gas, Wood Group has remained heavily indebted and dividend free. The group thinks its focus on cash generation will bear fruit, though, and the sale of its built environment consulting division for $1.6bn (£1.38bn) should knock off the debt issue.

Helpfully, its lenders increased their covenants so hitting a net debt-adjusted Ebitda ratio of 4.2 times did not bring the cavalry running at the June measurement date. Wood said the built environments sale cash should come through by the time the covenant goes back to 3.5 times.

Investors will get a clearer picture of the group under new chief executive (and former chief operating officer) Ken Gilmartin, who took over the top job last month, once the group’s new strategy is released in November.

He said his first weeks in the role had come at a time of “improving operational momentum. The strong order book gives me confidence for the future but there is a lot more to do on cash generation,” he said.

The group has already started a move away from large-scale projects and this hurt sales for the period, although the operations unit overtook projects to become the biggest contributor in terms of revenue, at $1.2bn. 

The idea behind taking on fewer lump-sum projects is to smooth out revenue and avoid contracts that end up being lossmaking.

That doesn’t mean new deals haven’t come in group-wide — Wood signed a decade-long “engineering and project support” agreement with Chevron, as well an extension with Equinor for work on its North Sea operations.

In the first half, there was a free cash outflow of $363mn, driven by a $208mn working capital outflow and exceptional costs of $102mn. 

This last figure included $38mn in payments after a Serious Fraud Office probe into 2017 Wood acquisition Amec Foster Wheeler, with another two payments of a similar size to come.

Another regulatory headache that has popped up this year is around a former Amec project, a chemical plant in Texas. Enterprise Products is after $700mn from Wood, and the group said a verdict was expected by year end. A settlement could still be reached, however.

Analysts are forecasting a small final-year dividend, on earnings per share of 19 cents, although the consensus has become more pessimistic as the year has gone on, falling from 26 cents a year ago. While investors aren’t feeling the energy rush yet, we stick with our hold call on the basis of the balance sheet improving and massive project losses now hopefully a thing of the past.

[chutes01] 26/8/2022 20:36

Carillion2

[ashkv] 26/8/2022 18:45

From WG 2021 Annual Report re the potential liability / Texas Chemical Plant Litigation...

Chemical plant litigation
In 2013, one of Amec Foster Wheeler plc’s subsidiaries was contracted to engineer, procure and construct a chemical plant for a
client in Texas. The cost of the project exceeded the client’s budget which led to the client partially terminating the contract in
December 2015, before terminating the remainder of the contract and commencing a lawsuit in Texas against the subsidiary and
also Amec Foster Wheeler plc in September 2016. The client seeks recovery of actual damages, plus punitive damages, interest and
attorney’s fees for breach of contract and warranty, gross negligence and fraud. The alleged actual damages total $761.8m, which
include an alleged $317m in lost revenue from delayed commercial operation.
The Group believes that the claims lack legal and factual merit but provided for an amount representing the fair value of the
exposure upon acquisition of Amec Foster Wheeler. The estimate that the subsidiary provided was in connection with the client’s
initial request for a lump sum bid and highly conditioned. The contract that was ultimately signed, and that governs the dispute, is
a reimbursable cost plus fixed fee contract, with no guaranteed price or schedule, wherein the client assumed joint responsibility for
management of the work and development of the project schedule. Liability for consequential damages is barred, except in the case
of wilful misconduct. Except for gross negligence, wilful misconduct, and warranty claims, overall liability is capped at 10 percent
of the contract price (or approximately $100 million). The Group has denied the claims and is vigorously defending the lawsuit. The
trial of the lawsuit is scheduled to commence in late April 2022 and is expected to continue into the third quarter of this year. It is
premature to predict the ultimate outcome of the matter

hxxps://www.woodplc.com/__data/assets/pdf_file/0016/218311/Wood_Annual_Report_and_Accounts_2021.pdf