Wood Group (john) Share Discussion Threads

[pogue] 20/11/2021 08:25

I am beginning to believe next year is not going to be so rosey. Any large projects are not going to be able to source the equipment to actually build it. Suppliers have in sone cases stopped taking orders as delivery dates for instrumentation, that is what I have been trying to source recently, are way out to the back end of next year for stock items and that is if they will take your order. Lack of chips is the base problem though I suspect specialist metals are not that easy to source either. I think companies may delay starting projects until they have a manageable end date. Nobody wants to start a multi $million contract with no end date.

[saltaire111] 16/11/2021 08:49

With oil above $75 a barrel, WG’s customers will be doing well. Bodes well for growth in core markets which gives WG more road to develop renewable services.

Deep value here in my view for long-term holders.

Salty

[forwood] 15/11/2021 08:30

Buy note from citi.

[pogue] 13/11/2021 08:59

The margins on renewables are higher I said that the problem again as I said is the size of the man-hours in the contract there are a lot fewer in renewables and
man-hours is what contractors sell.
I have worked in the industry all my life saying you work with Wood Group is fine I have worked for all the major contractors some many times.
The move to reimbursable has been going for years I can’t remember the last fixed price I worked on in the U.K. it tends to be European contractors with large staff workforces that take on fixed price as they have to cover their practically un sackable workforce so will even buy jobs and hope to make the money back in change orders, painful way of working.

[wall street trader] 12/11/2021 18:36

You are wrong there buddy - they are working in many projects today and the move from fixed price to reimbursable contracts is a move that puts the risk for margins back with the operator - this company are going to take advantage of this nee economy- I'm dealing with them daily on such projects globally

[wall street trader] 12/11/2021 18:34

I deal with Wood Group in a daily basis - trust me they are well positioned to take advantage of the new economy projects around hydrogen and Carbon Capture - am here for the long term

[forwood] 12/11/2021 11:41

I didn't take this as a profit warning so much as a change in expected revenue, due to some order delay which will affect net debt 'broadly in line with H1 2021' and which may impact EBITDA at the lower end of expectations.

There's a significant opportunity to improve 'the business that services the built environment end market' given Biden's infrastructure plans. Atm this accounts for 20% of gross revenue, with c6,000 staff in the US and Canada and the remainder largely in the UK. They have had several energy conservation wins, so that is potentially a high profile business unit - or separate company - going forward.

'we expect to deliver improved revenue and earnings in the second half of 2021', and 'growing order book' doesn't sound like a potential result justifying a market cap back to the pandemic lows. It looks like a buying op to me (and I picked up c 30,000 in the low 180s). One had to remember WG has c 5% of its stock short, so they will take advantage of any apparent weakness to close shorts. If you look at the share price it tends to rise quite substantially from lows like this, which probably explains why buying has been strong.

[chutes01] 12/11/2021 11:13

Struggling to get the co back on track
SFO fines of 49 Mio a year for next 4 years so no divi for few years

[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