Wood Group (john) Share Discussion Threads

[pillion] 22/8/2023 11:57

Coming good

[hamhamham1] 22/8/2023 10:00

Markets say... not bad!

[hamhamham1] 22/8/2023 07:27

Ken on bloomberg TV in a few mins.

He's coming across well, and bloomberg questioners seems happy with results and performance, and reiterating the reporting of a 'beat'.

Should be received well IMO on opening.

[hamhamham1] 22/8/2023 07:05

Ken Gilmartin, CEO, said:

"When we announced our growth strategy in November last year, we set out a plan for Wood to deliver on its significant potential, and I am delighted that our results show the clear progress we are making. We have made a good start to the year, delivering growth in revenue, EBITDA, headcount and our pipeline, all while furthering our inspiring culture, as evidenced by our highest-ever employee net promoter score.



"As we look ahead, we are confident that our actions, the business model we have implemented and the market growth opportunities to which we have aligned, support the momentum we are building in our business. As such, we are increasing our full year guidance for the year for revenue and EBITDA."





Delivering on our profitable growth strategy

· Well-positioned for growth across energy and materials

o Market growth opportunity of c.5% CAGR with addressable market of c.$235bn in 2025

o Double-digit revenue and pipeline growth in HY23 across majority of our key markets

o Excellent growth across Carbon Capture and Hydrogen

o Order book of $6 billion, up 5% compared to December 2022 (at constant currency and excluding the divested Gulf of Mexico labour operations business)

o Significant contract wins across energy and materials

· Growing and improving our pipeline

o Right business model in place, predominantly services-based cost reimbursable business

o Double-digit growth in the 24-month factored pipeline versus December 2022, following strategic clean up last year that removed lump sum turnkey (LSTK) and largescale lump sum EPC work

o This pipeline growth reflects the strength of our markets and our client offering

o Positive trends in pipeline gross margin reflecting selectivity of our bidding, and market conditions

· Engaged and energised people

o Headcount up 5% to around 36,000 people

o Highest recorded employee net promoter score scores to date

· Growing our sustainable business (see note 15)

o Over $600 million of sustainable solutions revenue in HY23, up 20% on last year

o Represented 20% of Group revenue

o 33% of sales pipeline from sustainable solutions, up from 31% at year end



Headline financial highlights

· Revenue and adjusted EBITDA ahead of expectations set out in HY23 trading update on 13 July

· Revenue of $3.0 billion was up 16% (+20% at constant currency) with growth in all business units

o c.$160 million increase in pass-through revenue, which generates only a small or nil margin

o This increase in pass-through revenue represented around a third of the revenue growth

· Adjusted EBITDA of $202 million was up 9% on last year (+12% at constant currency)

· Adjusted EBITDA margin of 6.8%, down 0.4ppts on last year, reflecting increased low margin pass-through revenue and our previously guided opex investments across the Group to deliver future growth

· Adjusted EBIT up 9% to $89 million following the EBITDA growth

· Adjusted diluted EPS of 1.1c was down 81% on last year, mainly reflecting the absence of Built Environment Consulting (sold in 2022) which contributed $57 million of adjusted profit after tax in HY22

· Adjusted operating cash flow of $39 million was significantly improved on last year, with improved working capital and lower utilisation of provisions more than offsetting the sale of Built Environment Consulting

· Free cash flow of $(219) million reflects phasing of exceptional cash outflows ($99 million vs.
c.$140 million expected for FY23) as well as the typical working capital seasonality of our business

· Net debt (excl. leases) at 30 June 2023 was $654 million, significantly down on last year following the reset of our business, but higher than December 2022 ($393 million) given the free cash outflow and the payment of $62 million of tax on the sale of Built Environment Consulting



Statutory results

· Operating profit of $23 million was down 26%, mainly reflecting exceptional items of $31 million which include around $5 million of Apollo-related costs and a $20 million receivables write-down in the Power and Industrial EPC business which was closed in 2022

· Loss for the period of $27 million reflects the lower level of profit from discontinued operations (Built Environment Consulting), the exceptional items and the tax charge in the period

· Basic EPS of (4.3)c reflects the loss in the period





Full year guidance

· Revenue is expected to continue to grow in the second half, albeit at a lower rate than the first half, which included the benefits of higher pass-through activity and a weak 2022 comparator. Overall, revenue for FY23 is now expected to be around $6 billion

· Our adjusted EBITDA margin is expected to be flat in the nearer term at around 7%, partly reflecting investments being made in the business and the level of low margin pass-through revenue activity

· As such, adjusted EBITDA for FY23 is expected to be ahead of our previous expectations and within our medium-term target of mid to high single digit growth

· Free cash flow is expected to be positive in the second half, with no change to our expectations for net debt at the end of the year and no change to legacy liability cash outflows, which mostly end in 2024

[wynmck] 04/8/2023 08:08

Jeffries raise to BUY from HOLD,tgt 210p

[iconista] 03/8/2023 20:20

...and Chutes has appeared. In the past, a post from Chutes has been a sign of good things to come.

[hamhamham1] 03/8/2023 19:32

Lovely strong rise over past week, plenty more in the tank IMO. GLA.

[chutes01] 03/8/2023 15:27

Price increasing, stolen worley contract at HBR today.
Shareholders been let down by questionable competence over the years, too many on the take within the building.

[hamhamham1] 31/7/2023 19:44

Last paragraph....

"Wood is a significant global business that will be integral to energy systems for many years to come, given its broad work across oil and gas, renewables, mining and chemicals. Now it’s on the straight-and-narrow and the shares have pulled back, it’s a good time to buy."

[dealy] 13/7/2023 07:17

Decent trading update today

[iconista] 29/6/2023 09:58

Chutes once again proves to be the best buy signal we could have.

[chutes01] 27/6/2023 14:39

It is indeed, major board change to be announced soon, worrying times for holders now.

[dexdringle] 26/6/2023 14:41

For the board to reject three offers over £2 claiming these to 'undervalue' the business, and for the shares to thereafter languish below £1.30, is nothing short of embarrassing.

[pogue] 21/6/2023 12:39

Lots of contracts being won just now in EPCs not a lot in oil all the big ones are gas. Huge boom going on just now. Wood have lots of Saudi work going on at the moment and are constantly looking for more engineers. That is all outside the Aberdeen office which I imagine will be dead for many years due to the current crop of politicians not understanding basic engineering or even economics.

[salpara111] 21/6/2023 10:05

Been watching for a while and almost pushed the button at 135.
Not clear what is causing the continuous decline, POO is still pretty firm and contrary to popular opinion oil production is not going anywhere for some time!
I have noticed that now we are in the position where we can get 4.5% yield risk free, any company not paying a divi is getting hit harder.
I'm keeping this on my watch list but won't be buying until I see a clear change of the trend.....I'd rather pay 130p for a rising share than pay 125p in a falling trend.

[dealy] 21/6/2023 08:57

This stock is just drifting down every day. Company should get up and say something

[dave894] 18/6/2023 22:22

Whatever occupies your warped mind is of no interest to me.

[gargoyle2] 14/6/2023 23:38

'Directors selling off options in unison'? Hardly. The Executive President of Operations (who is not in fact a director) exercised and sold £35k worth of options and the CFO exercised around £40k worth, of which he sold only £20k, to cover the tax liability. Hardly a disaster, given the large share purchases immediately after the bid fell through.

[dave894] 14/6/2023 21:21

Good old chutsey still lingering like a rancid smell.

[dexdringle] 24/5/2023 09:03

Not cheap enough ? Apollo were the ones who 'offered' £2.40 !

It isn't as though they said "how much?" and the board said "£2.40".

Something odd is going on here....