Wood Group (john) Share Discussion Threads

[ashkv] 30/8/2022 14:54

Wood Group was at 250p a few months prior - and the news flow has been positive since then...

Buys nearly 3x Sells today...Hope this continues :)

[ashkv] 30/8/2022 14:53

Ignore Chutes01 - he is an uber troll...track is stuck on repeat...

Iconista - to update divestment of Wood Group Built Environment Business scheduled to close by September end after which Wood Group should be debt free.... other EPC Peers have recovered strongly... and it is only time before WG bounces back... orders are up 5% per HY Report, Debt Free, New CEO, going forward no fixed contracts and very such contracts remaining on book... all to play for here... Barclays reaffirmed 320p target post HY 2022 results a few days prior...

[chutes01] 30/8/2022 13:51

Next leg down to begin, market sentiment will take this below 100p before the next shocker is known.

[iconista] 30/8/2022 13:35

I'm going to wait for the current short-and-distort campaign to ease here a little more but it's really only a matter of time before the share price recovers

[ch1ck] 30/8/2022 12:44

Time to put a toe one to the water?

[ashkv] 30/8/2022 11:41

Press release:
Wood to deliver detailed design for Equinor’s Halten Øst multi-field development project.
hxxps://www.euro-petrole.com/wood-to-deliver-detailed-design-for-equinors-halten-ist-multi-field-development-project-n-i-24360
hxxps://www.woodplc.com/news/latest-press-releases/2022/wood-to-deliver-detailed-design-for-equinors-halten-ost-multi-field-development-project

[woodhawk] 30/8/2022 09:48

Taken a small initial stake in WG this morning.

[ashkv] 30/8/2022 09:43

As Warren Buffet conveyed be greedy when others are fearful... Share price at 0.27 of Book Value...unreal for a soon to be zero debt firm...

From TipRanks - Based on 3 Wall Street analysts offering 12 month price targets for John Wood in the last 3 months. The average price target is 288.33p with a high forecast of 320.00p and a low forecast of 270.00p. The average price target represents a 124.29% change from the last price of 128.55p.

Post HY 2022 Results Barclays has Wood Group at 320p....
24-Aug-22 Barclays Overweight 320.00 320.00 Reiteration

JP Morgan has also changed rating to "Not Rated" .... that is an indication that they are working on a deal associated with Wood Group....
25-Aug-22 JP Morgan Cazenove Not-rated - - Reiteration
23-May-22 JP Morgan Cazenove Overweight 285.00 306.00 Reiteration

[ashkv] 30/8/2022 09:43

The only horror story I am encountering is trolls such as Chutes01... who seem to have escaped the QAnon asylum and Leo Koot conspiracy theories to appear on this chat...

[chutes01] 30/8/2022 08:32

His text tells a horror story of staff incompetence and arrogance
One of confidential info being freely shared across the city and industry contacts
Some just got too big for their boots, and were on the take.
Next horror story ? do you know yet ?

[chutes01] 30/8/2022 08:28

ashkv,
If you are in too deep here, this may be an oppo to divest, be careful.
Gilmartin brought in as fall guy ?

[ashkv] 30/8/2022 08:19

I am hoping an opportunistic Private Equity or Industry Bid arrives in short order... Ka ching :) :)

[ashkv] 30/8/2022 08:11

Operating profit before exceptional items $41mn

Free cash flow (including discontinued operations) of $(363) million includes a working capital outflow of $208 million and exceptional cash costs of $102 million, including the scheduled SFO settlement payment and costs associated with previously provided for loss-making contracts, principally Aegis

[ashkv] 30/8/2022 08:10

I posted it verbatim - and the items were exceptional... SFO settlement etc...

They will improve for one near zero / minimal interest charges...

HY 2022 Interest on bank borrowings $22.9 million

Interest on US Private Placement debt $26.1


The above no interest as soon as deal closes for divestment of Built Environment and Debt is extinguished... that is a lot of money over the next 5 years...


I would trust the analysts more than your random pick and choosing of the odd number from the results...

Bottom line - Energy on an upswing, Zero Debt, Analysts who research stocks for a living have WG at 300p (Not to be relied on solely at the absence of own research/personal due diligence a must). However, Sell Side Analysts broadly provide an estimate/guide going forward valuation with conservative estimates for known risks / other parameters...

[adae] 30/8/2022 06:36

@askv - I'm not a troll, but you're clearly a ramper.

You claim to have posted verbatim, yet conveniently ignored the actual numbers!

As I say, some will read what the CEO says, and read nothing further into it and be perplexed why WG is so "cheap". Some will analyse the results themselves.

The lines you might have missed (first number in 100's of millions, $):

"Net cash used in operating activities (147) (120) (22.5%)
------------------------------------------------------- ----- ------ ---------
Free cash flow(6) (363) (280) (29.6%)"


Verbatim.

Until that significantly improves - ideally, reverses in the next results - Wood Group has a problem. Suggest you read Note 6 & page 19 too, & contribute something useful.

[ashkv] 29/8/2022 19:59

As Warren Buffet conveyed be greedy when others are fearful... Share price at 0.27 of Book Value...unreal for a soon to be zero debt firm...

From TipRanks - Based on 3 Wall Street analysts offering 12 month price targets for John Wood in the last 3 months. The average price target is 288.33p with a high forecast of 320.00p and a low forecast of 270.00p. The average price target represents a 124.29% change from the last price of 128.55p.

Post HY 2022 Results Barclays has Wood Group at 320p....
24-Aug-22 Barclays Overweight 320.00 320.00 Reiteration

JP Morgan has also changed rating to "Not Rated" .... that is an indication that they are working on a deal associated with Wood Group....
25-Aug-22 JP Morgan Cazenove Not-rated - - Reiteration
23-May-22 JP Morgan Cazenove Overweight 285.00 306.00 Reiteration

[ashkv] 29/8/2022 19:57

Btw - if you go back a few posts the nutty troll chutes01 was ranting about how the market turmoil in the new week post Summer Bank holiday will take down Energy Performance Contracting (EPC) firms including Wood Group to below 50p... well the tide seems to be on the back of EPC firms.. US markets flat but Schlumberger Halliburton etc all up nicely on 29 Aug 2022....

As I type -

HAL +3.38%
SLB +3.20%

Hope you get the drift as to who is unhinged and who is on the right path...

[ashkv] 29/8/2022 19:53

Above is the entire verbatim management outlook / summary for Wood Group from HY 22 Results - look it up on their website... dubious trolls are adding their agenda into excerpts from HY Results - with their added bits to slant.. as the poster "Adae" has done...

[ashkv] 29/8/2022 19:51

Ken Gilmartin, CEO, said:

"Since becoming CEO in July, I have been really encouraged to see the improving operational momentum across our business, including some great client wins. The strong order book gives me confidence for the future but there is a lot more to do on cash generation and this is our top priority.

"We are developing an updated strategy for Wood that will draw on our core strengths, return us to growth and deliver sustainable free cash flow. We perform complex work in critical industries and our outstanding technical expertise and strong long-term client relationships position us well for growth across targeted markets. We have the consulting and engineering capabilities to help the world solve the global challenges of energy security, decarbonisation and energy transition. I look forward to sharing our plans at our capital markets day in November.

"In the meantime, we are focused on our culture and energising our people, performance excellence and strengthening our balance sheet through the completion of the sale of the Built Environment business, which we expect around the end of Q3".

HY22 financial highlights

Revenue (continuing operations) flat with growth in Operations (+18%) and Consulting (+2%) offset by the expected decline in Projects (-15%)

Adjusted EBITDA (continuing operations) down 5%, with a robust performance in Consulting offset by a decline in Projects and Operations. Improved performance in Investment Services

Margin (continuing operations) down 0.4ppts including the impact of the anticipated lower margin in Operations and a slightly lower margin in Consulting, both offsetting higher margins in Projects

Exceptional items (continuing operations) pre interest and tax of $11 million (HY21: $15 million) including restructuring costs and an asbestos credit

Adjusted diluted EPS of 5.7c down 36% reflects the lower EBITDA and higher finance expenses

Free cash flow (including discontinued operations) of $(363) million includes a working capital outflow of $208 million and exceptional cash costs of $102 million, including the scheduled SFO settlement payment and costs associated with previously provided for loss-making contracts, principally Aegis

Sale of Built Environment Consulting to WSP Global expected to complete around the end of Q3

Enterprise value of $1.81 billion, representing an EV multiple of 16x (incl. expected standalone costs)

Net cash proceeds expected to be around $1.62 billion after working capital adjustments, tax and transaction costs

Will transform balance sheet: the immediate use of proceeds will be to reduce the Group's net debt

Balance sheet

Net debt (excluding leases) of $1,756 million at 30 June 2022 reflects the negative free cash flow in the period

Net debt / adjusted EBITDA (excluding leases) at 4.2 times at 30 June 2022, below our covenant levels currently set at 4.5x for the June 2022 and December 2022 measurement dates (which revert back to 3.5x thereafter)

Provisions: the trial for the legacy lawsuit with Enterprise, related to a chemical plant in Texas, started in April 2022 and has concluded, with a decision expected by year end

Operational momentum

Order book (continuing operations) up 5% to $6.4 billion with strong growth in Consulting (+16%) and Projects (+24%) partially offset by a decline in Operations (-6%), where the prior year benefited from significant multi-year orders

Continue to de-risk our contract portfolio with 80% of Group revenue (continuing operations) now from reimbursable work (HY21: 75%) and only c.3% from lump sum turnkey contracts (FY21: c.6%)

Multiple key contracts awarded in the period across all three business units, including a 10-year strategic partnership with Chevron

Contracts wins across energy transition and decarbonisation worth over $500 million so far in 2022

Outlook for 2022

As stated previously, we expect higher revenue across our business this year and an improved performance in the second half, helped by an improvement in our Turbines joint ventures

At 30 June 2022, revenue in our order book (continuing operations) for the second half of 2022 was$2.5 billion, an increase of 9% compared to the prior year equivalent figure of $2.3 billion.

Our guidance for FY22, excluding Built Environment Consulting, is:
o Revenue between $5.2 billion and $5.5 billion
o Adjusted EBITDA between $370 million and $400 million

Updating our strategy
We are updating our strategy, based on the strong foundations of Wood. We have unique consulting and engineering skills that are critical to solving the global challenges of energy security, decarbonisation and energy transition

We will hold a Capital Markets Day on 29th November 2022 to outline our updated strategy in detail

In the meantime, our near-term priorities are:

o Completing the sale of Built Environment Consulting
o Strengthening our balance sheet and restoring financial flexibility
o Focusing on our culture and energising our people
o Defining our priority growth markets
o Improving operational delivery and consistency
o Addressing our remaining legacy issues

[chutes01] 29/8/2022 19:20

Next bombshell is ?
Do you know yet ??

[chutes01] 29/8/2022 19:18

Anything cash generative will be punted soon for sure
This is going out of business

[adae] 29/8/2022 19:01

Amazing how you read what you want to read. Some will have read this for the CEO's forecast:

" o Revenue between $5.2 billion and $5.5 billion
o Adjusted EBITDA between $370 million and $400 million"


Others this:

" o Revenue between $5.2 billion and $5.5 billion
o Adjusted EBITDA between $370 million and $400 million"
- Cash outflow another multi hundreds of millions.


Place your bets, but hope there's a few more divisions they can flog in future.

[ashkv] 29/8/2022 18:39

Market gives Wood Group a market cap of USD1 billion even at current price... that is not exactly conveying it is going bust... also volumes are very low for shares...only one recent RNS about an II selling and that too not much...

Market is just waiting for the Built Environment business sale to close / cash to arrive and is sitting on the sidelines until then... letting share price down so weak hands get scared... make your entry Chute01.... WG could bounce 20-30% on a day based on any serious buying!!!

[chutes01] 29/8/2022 18:19

Market is saying this goes bust

[ashkv] 29/8/2022 15:38

From TipRanks - Based on 3 Wall Street analysts offering 12 month price targets for John Wood in the last 3 months. The average price target is 288.33p with a high forecast of 320.00p and a low forecast of 270.00p. The average price target represents a 124.29% change from the last price of 128.55p.

Post HY 2022 Results Barclays has Wood Group at 320p....
24-Aug-22 Barclays Overweight 320.00 320.00 Reiteration

JP Morgan has also changed rating to "Not Rated" .... that is an indication that they are working on a deal associated with Wood Group....
25-Aug-22 JP Morgan Cazenove Not-rated - - Reiteration
23-May-22 JP Morgan Cazenove Overweight 285.00 306.00 Reiteration