Wood Group (john) Share Discussion Threads

[the white house] 16/6/2022 17:13

Back in @ 178 One way bet

[pogue] 16/6/2022 14:29

PFC is also falling this fall is not specific to WG so can be assumed to be just general market driven. Nice to hear they are paying off debt with the money from the sale as interest rates and inflation will keep rising making debt is a big negative. should rerate at some point upwards as contracts roll in. I hope lol, this market will put doubt into anybody's mind.

[ashkv] 16/6/2022 12:01

Per Bloomberg Terminal 12 Analysts Cover Wood Group - JP Morgan and Morgan Stanley have suspended ratings as likely involved with recent division sale

Remaining 10 Analysts - 6 Buys 4 Hold
Average Target Price 285p
Highest 400p from Citigroup
Lowest 150p from Jefferies (likely prior to sale of division)

[ashkv] 16/6/2022 11:29

At 180.5p Share Price Wood GroupMarket Capitalisation £1,246 million

Share price down 7% on GBP 1.2 million worth of share volume - barely 0.1%

This is a great buying opportunity.

Should turn around strongly post next weeks update....not long to go...

[ashkv] 16/6/2022 11:26

From Tip Ranks
One extreme sell outlier skewing overall target price down to 275p

4 Buys 1 Hold 1 Sell
275.40p
▲(52.49% Upside)
Based on 6 Wall Street analysts offering 12 month price targets for John Wood in the last 3 months. The average price target is 275.40p with a high forecast of 340.00p and a low forecast of 151.00p. The average price target represents a 52.49% change from the last price of 180.60p.

[ashkv] 16/6/2022 11:09

Actually 151p 52 week low - and around 15% further to go until that is hit - I am waiting for a bottom post averaging down... as already have an average around 190p.

[ashkv] 16/6/2022 11:08

150p is the 1 year low, 5 year low (pandemic peak early 2020) and 15 year low... incredible buying opportunity forthcoming...

Most analysts have recently updated Wood Group target price to the 300p range... sell off on extremely low volumes...

[ashkv] 16/6/2022 08:30

FYI:

hxxps://www.woodplc.com/news/latest-press-releases/2022/wood-signs-global-engineering-and-project-support-master-services-agreement-with-chevron

Published: 14 June 2022
Wood, the global consulting and engineering company, has entered into a 10-year global master services agreement for engineering and project related services with Chevron.

The agreement can be used by all of Chevron’s business units and covers both offshore and onshore assets within the upstream, midstream and downstream markets.

The deal enables the formation of a global strategic relationship, strengthening the overall quality of engineering and providing predictable outcomes for project delivery worldwide. To further enhance predictable performance, Wood will work with Chevron’s digital enablement specialists to collaborate, optimize, and pursue efficiencies.

Jennifer Richmond, Executive President of Strategy & Development at Wood, said: “With Chevron, we share the same strategic sentiment, growth mindset and alignment on key sustainability and performance goals. Our strong market proposition enables us to provide solutions right across the energy spectrum on a global scale, and our commitment to digitalization and adoption of best-in-industry practices ensures we are continuously seeking performance and project efficiencies.”

Jim Shaughnessy, President of Conventional Energy at Wood, added: “Transparency, ingenuity, collaboration, and predictable performance have all been key to building our more than 20-year relationship with Chevron.”

[ashkv] 16/6/2022 08:29

Of course they will recover from here - along with the sector. Have already conveyed order book has increased and outlook is positive.

On deal completion WG be net cash positive and have a rock solid balance sheet...

Falling on very very low volume relative to market cap 0.2-0.4% of outstanding shares... great buying opportunity for smaller investors.

I am adding to my holding and averaging down having a 200p average at present...

[tahmina1] 16/6/2022 08:28

The increased cost of debt impinging on the SP?

[chutes01] 15/6/2022 15:24

There appears abject incompetence across the board, huge shareholder value destruction has occurred.
Stewart and Watson walked away too late, I suspect SIW had a quiet word.

Reputational damage within industries, and the city boys don't like nasty write-offs, SFO investigations or delayed figures.
Incompetence, which at times manifested itself as arrogance has been the downfall of Wood in several sectors, will they recover from here ?

[ashkv] 15/6/2022 13:49

Just market jitters - and very very low volume... folks staying on the sidelines which is odd... given the compelling entry prices for WG....

[ashkv] 15/6/2022 13:49

20% drop from current 188p to hit 52 week low of 150p - and 41.5% to hit 52 week high of 266p - prior to successful asset sale, resurgence on Energy markets, positive guidance as to order growth - $6-$7bn of revenues now valued only at around $1 billion once cash of $1.8Bn comes in shortly. Net Debt was at $1.4 billion per Full year results for 2021....

Low low volumes - drop overdone.... I last added on Spread Bet and directly at such levels and didn't sell at 252p as I expected upliftment post asset sale... however, that didn't work out well....

Will be adding on any dips from here... it is a no brainer...

[ifthecapfits] 15/6/2022 09:51

Is there a reason for the poor share price of late other than market jitters? Tempted to open a position.

[fsawatcher] 15/6/2022 07:15

dis go any lowers and it be bought out

the buyer payin $2bln shud jus pay $4bln and take the lot

[ashkv] 14/6/2022 15:12

Wood Group should dual list in the USA - useless UK market is severely undervaluing the share...

[fsawatcher] 07/6/2022 12:11

Blackrock gotta close out

[colonel drake] 06/6/2022 12:36

New broker note out too with 330p target. Barclays.

I'd agree with that. 330p is where I think it's fair priced until deal is officially inked and then another 30%+ up to 420's into Q4 or Q1 2023.

Service sector on fire and O&G market well behind development and exploration curve. Billions required to get supply added.

[colonel drake] 06/6/2022 08:13

Looking fruity this morning.

Director buy at 220p looks well timed. 22k shares as well.

I only managed 221p as a top up but very happy with the way the shorters are trying to get out of this one.

The deal was well received by Canadians and looks 99.9% certain to complete imho.

It's worth the entire market cap of WG yet equates to just over 25% of the business.

That's how mad this market is... we should be at 400p+ right now.

[colonel drake] 01/6/2022 14:50

US markets open and Blackrocks spivs get to work!

That's a 5p jump in the price since they got plugged into the book.

Pretty clear they want out of that 1.8% short position and must be thanking the UK desk boys for doing a sterling job this morning.

I was always investing in Wood Group for the 2023 and 2024 years. They will be very good. But did think that the asset sale would get this into the 300p+ mark with ease.

Blackrock have a substantial long position in WG too so don't mind the hedge games but when they are done, they are playing the long game and that bodes well.

The landscape for order book builds in 2022 is huge. Just wait for those deals to come in and the share price will start to motor. For moment, the market is taking a short term view of a long term business which makes no sense at all.

Asset sale today represents circa 25% of total business and is worth the entire market cap today (almost!).

That's bonkers!!

The debt boys will have arbitrage in place too so my guess is they will unwind big time when the deal gets concluded which I am presuming means any rev between now and final signature comes out way and not back dated.

[colonel drake] 01/6/2022 14:19

They haven't ruled out a special divi but strategically could deploy cash through accretive measures / opportunities.

The reality is... this was a big business with debt rising fast due to past unforeseen events.

Now it's the opposite... it's effectively debt free, has very bright order book and looks to be back to delivering serious profits in 2023.

This a bit like buying Glencore at 200p a while back before the commodity price surges.

Glencore now 525p and that's after a bucket load of divi's.

[mcntrader] 01/6/2022 11:44

No, ordinary dividend was never explicitly mentioned to my knowledge. Perhaps some entities 'assumed' that a one-off special dividend could be paid, but again this was never mentioned to my knowledge.

[saltaire111] 01/6/2022 11:35

Did the market expect immediate restoration of dividend payments?