Wood Group (john) Share Discussion Threads

[pogue] 12/11/2021 09:55

Renewables is jam tomorrow plus the engineering manhours in those projects are
a lot lower so less profit, the margins are however higher but I doubt it will offset the lack of engineering compared to oil and gas. There will be a lot of new large contracts coming next year in O&G its a fact the price of oil will drive that and the RNS says they have only been delayed to next year as I suspect oil companies are wary of a price drop, which I cant see as OPEC+ seem determined to keep the price high after appeasing the last US President to lower prices it did them no good when they asked for American shalers to cut production, lesson learnt every man for himself.

[saltaire111] 12/11/2021 09:48

Yes, a real mess over at Avon. I think the naked trader is a big holder there - he will be nursing a few lost pounds this morning!

Looking at the detail here, while it is disappointing that both revenues and margin are going to be lower, they are very modestly behind forecast and the impact in the longer term is negligible.

I think the analysts will see through these minor bumps.

The renewables sector is a MASSIVE opportunity for WG.

Salty

[cassini] 12/11/2021 08:16

Well it's not cratering quite like AVON is at the moment!
That's not saying much though...

[cassini] 12/11/2021 08:04

Not that much reaction so far really...

[cassini] 12/11/2021 07:49

Hmmm.

Just wondering whether to try and sell my holding at the open and cut my losses. I'll see if I can get a quote when the market opens. Could be worse I suppose - could be holding AVON this morning...

[saltaire111] 12/11/2021 07:43

This morning’s update is basically a profit warning.

Not good.

Salty

[chutes01] 07/11/2021 14:29

bounced off 200p level again, lets see it push on from 250p this time, market cap is too cheap.

[specinvest] 06/11/2021 18:09

Degree apprenticeships are more about getting cheap labour than succession planning.

There is no shortage of engineers and there is not going to be one. There is a shortage of engineers willing to work at lower rates however.

[martyminer] 05/11/2021 12:57

Great presentation from Wood at COP this week on a hydrogen future and their work. See website. I have researched this company extensively and invested for a few years (hoW I wish I'd have invested when they were £1 at the Covid crash). I see a bright future for Wood as they are diversifying. I also think the measure of a good company is succession planning even to the point of new talent from their degree apprenticeship programme. Seems cheap to buy right now.

[pogue] 03/11/2021 13:42

I am going to filter him, wasting my time speaking to him clearly ramps or deramps with totally irrelevant theories depending on his position.

[essentialinvestor] 03/11/2021 12:51

chutes0125 Oct '21 - 13:59 - 463 of 476
0 0 0
break out starting now
300p


chutes0125 Nov '21 - 17:32 - 471 of 477
2 Nov '21 - 17:32 - 471 of 477
0 0 0
There are few contracts, all are severely margin constrained, and this has been the case for several years now
could this be the biggest casualty in the energy sector



In other words he does not have a clue.

[chutes01] 03/11/2021 12:42

added now, thought the 230p level was a springboard, but it got to 200p, should see great recovery here, far too cheap.

[pogue] 03/11/2021 12:14

chutes
do you actually have any idea of the company or you just posting any thing that comes to mind randomly?
Oil price looking strong due to supply issues and huge lack of investment in oil and gas infrastructure in previous years that need rectified and FEEDs going on everywhere to get those projects out for bidding asap. There is a bonanza going to happen in the O&G contracting industry next year.

[chutes01] 02/11/2021 20:52

Not negative
Just as I see it right now

[pogue] 02/11/2021 20:43

There have been few contracts as the oil price has been low, do you know what Wood Group do? Do you expect the oil price to drop again? Energy transition is not going to effect the oil price for some time the greenies have caused this oil price spike by deterring companies from investing in oil now there is a shortage money will go in otherwise the world grinds to a halt even Biden understands that.

[martyminer] 02/11/2021 19:07

Hi chutes01 I have a small position on these I was just wondering whether you do? I'm being friendly not confrontational and wondering why very negative for this company ? Thanks

[chutes01] 02/11/2021 17:32

There are few contracts, all are severely margin constrained, and this has been the case for several years now
could this be the biggest casualty in the energy transition

[pogue] 02/11/2021 17:21

What environmental stuff exactly? They have had a few mickey mouse natural gas to H2 contracts in Aberdeen as far as I know and not much else. The margins on renewables are high but the projects are very small so not much revenue O&G will drive this share for the foreseeable for better or for worse.

[martyminer] 02/11/2021 16:43

This company is not just about oil and gas, more about environmental stuff etc Buying opportunity at 200p imho

[pogue] 01/11/2021 12:53

Where is your reasoning for no new contracts? With oil and gas prices at current levels due to massive shortages?

[chutes01] 01/11/2021 12:36

£45 mio to be repaid each year for next 4 years to SFO after corrupt deals
so no divi re-instatement
no new contracts as oil/gas fades, this could be finished.
Looks to be in distress, a break of 200p would be catastophic.

[pogue] 01/11/2021 11:59

If they dont increase rates they like everyone else will not get the engineers. There comes a point if they want to do the job they will pay the rate.
There is going to be a bigger shortage than normal next year as many engineers have retired, combination of IR35 and being close to retirement age, many have left the industry, I am one of those, and not bringing on new engineers during all the lean years means there are no young ones to move up to fill the gaps. I expect a lot of work will go to India but as we all know you pay for that later when the remediation work is needed.

[specinvest] 01/11/2021 11:50

@pogue Recruitment may be up, but I think they are going to have a big issue with actually getting and retaining engineers.
For one the company has stated they will not be offering inflation beating rate increases to employees in the new year on top of no rate increases over the pandemic.
The company is going to see a brain drain soon if they're not careful.

[saltaire111] 01/11/2021 09:59

It’s the debt that is the problem here. Need to see concerted efforts to cut cost and reduce debts before the share price will improve.

Salty

[chutes01] 25/10/2021 14:59

break out starting now
300p