Wood Group (john) Share Discussion Threads

[ashkv] 12/1/2023 07:44

2022 Trading In Line With Expectations

John Wood Group PLC ('Wood' or 'the Group') announces a trading update for the year ended 31 December 2022 ('FY22'), including the headline draft financial results.
Highlights
·Delivering financial returns
o Results for FY22 in line with guidance for revenue, adjusted EBITDA and net debt
o Strong underlying revenue growth in 2022, led by Operations and Consulting with a return to growth in H2 in Projects
· Transformed the Group
o Financial strength restored following the sale of Built Environment business in September 2022
o Legacy issues addressed including Enterprise litigation settled in November 2022
o Business de-risked with minimal lump sum turnkey (LSTK) work remaining

·Well-positioned for market growth
o Order book of c.$6 billion including strong growth in Projects
o Around 22% of Group revenue from sustainable solutions1

FY22 financial highlights
·Revenue around $5.4 billion: underlying revenue growth at constant currency of around 8%. Reported revenue up 3%, including an adverse impact of around $275 million from foreign exchange rate movements. Growth in Consulting and Operations was offset by the expected full year decline in Projects
· Adjusted EBITDA around $375 million to $385 million: in line with guidance and includes an adverse impact of around $15 million from foreign exchange rate movements
· Adjusted EBITDA margin around 7.1% compared to 7.7% last year. This includes the impact of the previously guided lower margin in Operations, and a lower margin in Consulting that partly reflects the impact from exiting work in Russia
·Net debt (excl. leases) at 31 December 2022 around $350 million to $400 million2,3 - within our guided range
·Order book at 31 December 2022 of around $6 billion with the order book fdelivery in 2023 up by around mid to high single digit percentage on the position a year ago
 
Outlook for FY23
As usual, we will give financial guidance for FY23 alongside our full year results on 28 March 2023. We expect guidance for FY23 to be in line with our medium-term financial targets of adjusted EBITDA growth at mid to high single digit CAGR, with momentum building as our strategy delivers.

As previously set out, we anticipate a material improvement in underlying operating cash flows in 2023 which will be outweighed in the short term by defined payments on legacy liabilities, before a return to positive free cash flow in 2024.

Ken Gilmartin, CEO, said:

"We are pleased to have delivered a result for 2022 in line with our expectations at the half year, including a return to revenue growth and a balance sheet position that reflects the strengthened Group.

"We are focused on growth in energy and materials, both with structural growth drivers - energy security, energy transition, net zero and the circular economy - which create long term growth opportunities for Wood. Our leading positions in these markets, long-term client relationships and expertise in decarbonisation and digitalisation is enabling us to win additional market share.

"Significant contracts won in the second half of the year include a five-year engineering services contract renewal with bp, a three-year contract renewal with Shell in the UK North Sea, and a four-year contract with INEOS to deliver a state-of-the-art petrochemicals complex in Belgium.

"This is a new Wood, led by a new team, and the strategy we recently shared at our Capital Markets Day will enable us to deliver sustainable returns. We have attractive growth prospects in our core markets, we are trusted by our clients, and we have the talent and solutions to enable a net-zero future. We're focused on designing a strong future for Wood and enter this New Year with positive momentum.
"

[ayl30] 12/1/2023 07:12

Todays update sounds confident. Cash position on track for improvement

[iconista] 11/1/2023 08:08

When chutes speaks, I buyAll shorts gradually closing herehttps://shorttracker.co.uk/company/GB00B5N0P849/

[chutes01] 10/1/2023 15:27

bit of a big fat slugfest to get over the 150p mark, falling back now
The question of this lots survival and viability going forward won't go away, another claim on shareholder funds and the whole shooting match is gone up in smoke, £8 Billion gone, SIW got out with his profits in time, telling all his students at RGU that O/G was finished, now the clown is all over the media like a hot rash.

[ashkv] 09/1/2023 06:28

Trading update this week Thursday 12 January 2023 - hopefully some good news post all the doom and gloom....

hxxps://www.woodplc.com/investors/financial-events-calendar

[ashkv] 28/12/2022 09:28

:)

pogue
15 Dec '22 - 16:26 - 941 of 956
0 3 0
Thought of this song when I saw you posting chutes, enjoy

[ashkv] 19/12/2022 07:43

:)

pogue
15 Dec '22 - 16:26 - 941 of 956
0 3 0
Thought of this song when I saw you posting chutes, enjoy

[chutes01] 18/12/2022 02:06

CC gov money given to NE England to appease voters

[ashkv] 17/12/2022 10:51

For the uber troll clown Chutes - if you listen to him likely to miss out on the big fat takeover premium that is incoming given WG depressed share price, improving business performance and robust balance with minimal debt - currently less than 1x EBITDA...

pogue
15 Dec '22 - 16:26 - 941 of 953
0 3 0
Thought of this song when I saw you posting chutes, enjoy

[ashkv] 17/12/2022 10:49

A few days prior - Jefferies upgrades Wood Group to 'buy'

Mon, 12th Dec 2022 12:20

(Sharecast News) - Jefferies upgraded Wood Group on Monday to 'buy
' from 'hold' and hiked the price target to 190p from 150p.

[pogue] 16/12/2022 18:57

not flying to ABZ to meet you currently working elsewhere

[chutes01] 16/12/2022 18:18

pogue,

You have our meeting

[pogue] 16/12/2022 18:15

Chutes
got news for you the O&G business is not doing that well right now, there is a reluctance to invest in large projects from what I am seeing. PFC is a good example they are not getting the wins they should in a high oil price environment. Besides fixed price contracts are being abandoned by all the big players as not worth the risk.

[ashkv] 16/12/2022 11:37

A few days prior - Jefferies upgrades Wood Group to 'buy'

Mon, 12th Dec 2022 12:20

(Sharecast News) - Jefferies upgraded Wood Group on Monday to 'buy
' from 'hold' and hiked the price target to 190p from 150p.

[ashkv] 16/12/2022 11:36

127p as I type and even with downgrade still 42% upside - not to mention major catalyst of a likely takeover offer.

Barclays cuts John Wood to 'equal weight' (overweight) - price target 180 (250) pence