Wood Group (john) Share Discussion Threads

[pogue] 07/11/2024 09:02

Seems they are cutting bodies right now on the engineering side and won’t be hiring any more. Considering they were short already that is not going to have a good outcome in the future for the job quality so possible remedial work which they will have to pay for. Plan is to have all work done in India, low cost centre, in 10 years. Having dealt with Indian engineers in India that is not going to be a cost saving long term I suggest.

[blakesmith] 07/11/2024 09:00

Cheap er buyout offer

[lawson27] 07/11/2024 08:59

In for a trade @67, GLA

[dealy] 07/11/2024 08:59

thanks for posting, but why didn't the company mention this today?

[chutes01] 07/11/2024 08:55

This won’t survive

[volsung] 07/11/2024 08:54

Might need a placing

[pogue] 07/11/2024 08:53

As I said yesterday there could be effects due to ongoing work and a significant Aramco project which is FEED and pre FEED, so manhours only which need VAT now added. They are doing the EPC so some relief there due to large equipment costs in the price but there are even more manhours in EPC. That VAT issue is going to change things. I am told there is massive cost cutting going on just now.

'In October, we secured a significant engineering contract with Aramco to provide a range of services including pre-FEED, FEED and EPC contracting support for gas facilities in Saudi Arabia.'

[theoriginalwonderstuff] 07/11/2024 08:48

I have to say that this is now looking really cheap, but it takes a brave man/woman to catch a falling knife.

[tomboyb] 07/11/2024 08:48

Another disappointing trading update -

This is a solid company -

Jeeze -

[chutes01] 07/11/2024 08:36

The end
Expect resignations ltr

[dealy] 07/11/2024 08:33

This is indiscriminate panic selling.

[girvin] 07/11/2024 08:31

& they've rejected offer after offer the last 2 years. Oh dear.

[dealy] 07/11/2024 08:24

They should be obliged to give a range of what they think the impact should be and how much any additional payments will be required (cash cost versus non-cashcost)

[pogue] 07/11/2024 08:19

Listened to the conference call they were cagey about the independent review I think this maybe something to do with the VAT issue as a few historic contracts are obviously now going to be loss making instead of profitable so will need revising.

[hazl] 07/11/2024 08:19

Risk has been shown but ....


'FY24 outlook confirmed

Our full year outlook remains unchanged:

· High single digit growth in adjusted EBITDA, before the impact of disposals, helped by an expected strong performance in the fourth quarter

· Net debt (excluding leases) at 31 December 2024 expected to be at a similar level to 31 December 2023 ($694 million) after disposal proceeds. This is subject to the sale of EthosEnergy completing by the end of the year



FY25 free cash flow

While mindful of the weakness in our Projects business, we remain confident in the continued improvement in the cash trajectory of the Group, with improving operating cash flow and reducing exceptional drags. Our intention is to provide free cash flow guidance for FY25 at our full year results.'

Good luck everyone in these difficult times.

[hazl] 07/11/2024 08:18

Yes the markets treat any downside harshly just now.

The only good things I can see there are

'Operations continues to see strong momentum. Q3 revenue was up 9% to $652 million, with YTD revenue up 8% to $1,954 million. The revenue growth reflects higher activity levels, particularly in Europe and the Middle East. We are also seeing diversified market growth with the first major LNG win of scale won by the Operations team in Australia.

Operations YTD EBITDA was higher than last year, helped by good operational performance.'

'Business wins in the period

We continue to develop our pipeline, particularly across sustainable solutions which now represent 46% of our pipeline, up from 39% at the half year.



Significant contract wins in the period included:

· Six-year contract with Shell for the world's largest floating offshore LNG facility in Australia

· Three-year contract to operate the Freepoint Eco-Systems advanced recycling facility

· $40 million engineering design for a sustainable packaging production plant in Singapore

· Seven-year master service agreement worth c.$200 million with BC Hydro, a Canadian electric utility corporation, to modernise and expand the electric grid in British Columbia

· Appointed lead specialist consultant for the Greater Sunrise Development



In October, we secured a significant engineering contract with Aramco to provide a range of services including pre-FEED, FEED and EPC contracting support for gas facilities in Saudi Arabia.'


And

'We expect the fourth quarter order book to reflect large work being awarded in Operations and Projects.'

However it is tainted by unusual factors, it seems to me.

[mj19] 07/11/2024 08:12

Wow woke up £1200 lost just this morning

[chutes01] 07/11/2024 08:08

Bust
They had it coming

[dealy] 07/11/2024 08:08

what a mess. But at 99p lot of negativity is priced in Could be benign

[girvin] 07/11/2024 07:30

Independent review into Accounts, Wood group will tank again today.

[hazl] 06/11/2024 09:13

I think you have to make up your own mind here t o w s
like everyone else here.

[theoriginalwonderstuff] 06/11/2024 09:09

I'm still not sure if I am brave enough to buy this... Will tomorrow bring bad news? Spin for heads??

[hazl] 06/11/2024 08:52

Interesting background here for anyone who might not have seen it.

[hazl] 06/11/2024 08:17

Trump rally?