Wood Group (john) Share Discussion Threads

[plentymorefish] 12/9/2022 10:11

Chutes must be having kittens!….,

[bc4] 09/9/2022 15:04

Hopefully this is the bottom looks like the bounce could be on

[kibes] 08/9/2022 08:38

130 new oil and gas licences reported to be announced today plus a drive to increase North Sea production - this has to be good for Wood Group surely? The market has got a real downer on this. I am ready to pile in but would like the chart to bottom out first.

[velvetide] 07/9/2022 14:07

link from lse:

[chutes01] 06/9/2022 18:36

Another director purchase
Party is over for some at wood
And not before time

[chutes01] 04/9/2022 16:58

1 Mio £ buy in late Friday, time to get back in monday

[ashkv] 02/9/2022 15:21

WG debt approaching zero/ practically extinguished in a few weeks with Built Environment business divestment guided to close by end Sept / Q3.
Post which WG will be saving $100mn plus annually in interest expenses... With the added benefit of a rock solid balance sheet with $5bn of revenues forecast to go higher in a buoyant market... share volumes for WG have been low and I expect market will pile back in post the closing of the sale of the Built Environment business which is guided to close by the end of September 2022 - leaving WG debt free...

New CEO, New strategy, Energy Market in upswing, Orders Book up 5% per HY 2022 results, Fidelity adding as it did last week per RNS, Director Buys per recent RNS, only one recent holding RNS updating as to reduction by an II, Analyst targets around 300p post half year results... all to play for here...

[ashkv] 02/9/2022 15:20

From another forum ->

Today 08:21

Technicals are looking good today, macd cross, rsi lifting out of oversold and price
bottomed out.

[chutes01] 02/9/2022 14:58

Got to be a high tariff week coming up here, bit of a binary play now, based on US litigation surrounding Texas refinery claim

New CEO is looking to kitchen sink other skeletons and so survival of the register here remains in doubt, market has priced this in, all in all, it remains on a knife edge.

[ashkv] 02/9/2022 08:54

ransaction highlights
• Agreement to sell Built Environment Consulting to WSP for gross proceeds of approximately $1.9 billion
and a total enterprise value of $1.81 billion
• Consideration implies an EV/EBITDA multiple of 16x based on FY21 pro forma pre-IFRS 16 adjusted
EBITDA for Built Environment Consulting including expected standalone costs (see note 1 on page 3)
• Expected transaction costs of around $50 million and expected cash tax costs of around $60 million
• Net cash proceeds would result in a pro forma net cash position at 31 December 2021, compared to net
debt/EBITDA of 3.3x as previously reported
• Divestment provides enhanced financial flexibility which will allow the Group to consider further options
on the use of proceeds. These include measures to improve the future sustainable cash flow of the
ongoing Group through the removal of certain liabilities, investment to accelerate our strategy and
shareholder returns, for example through the restoration of an ordinary dividend
• The transaction is subject to various conditions, including Wood shareholder approval and certain
regulatory approvals
• Class 1 circular and notice of General Meeting to be published in due course
• Completion expected in the second half of 2022
• Sale will significantly reduce the Group’s leverage and help us accelerate our strategy to be a leader
across energy security and sustainability

hxxps://www.woodplc.com/__data/assets/pdf_file/0013/220531/Sale-of-Built-Environment-RNS-01_06_22.pdf

[ashkv] 02/9/2022 08:42

From another forum ->

Today 08:21

Technicals are looking good today, macd cross, rsi lifting out of oversold and price
bottomed out.

[ashkv] 02/9/2022 08:40

What multiple is BE being sold at? 8? So a $1.6bn net receipt, with a loss of c.$200m pa? Vs a saving of $100m pa in debt interest costs.

If I recall the BE is being sold for about 15-16 times EBITDA not 8...

Also any student of finance - would guide that Zero Debt is often not the most Tax Advantaged or efficient Capital Structure..

Wood Group is on a new strategy - legacy fixed contracts will be nearly extinguished in the next 12 months... rock bottom prices..

Easily a take-over target.. and some unforeseen hit could happen but risks are weighed to the upside and that is why I am averaging in.. as the Directors are doing with their Buys and Fidelity with their recent increase of ownership in Wood Group.

Analyst target prices close to 300p - with Barclays reaffirming at 320p post HY results..

[spectoacc] 02/9/2022 08:31

"Seized by court"? Nonsense. WG does need the leeway to cover further historic hits tho. ideally that would be from cashflow, something that has been resoundingly negative lately.

[chutes01] 02/9/2022 08:28

Down down deeper and down
Proceeds of sale being seized by court
Then what

[spectoacc] 02/9/2022 08:26

Again, the debt will not be zero nor "practically extinguished".

"We target a net debt / EBITDA range (excluding leases) of
0.5 times to 1.5 times."

What multiple is BE being sold at? 8? So a $1.6bn net receipt, with a loss of c.$200m pa? Vs a saving of $100m pa in debt interest costs.

[ashkv] 02/9/2022 08:13

WG debt approaching zero/ practically extinguished in a few weeks with Built Environment business divestment guided to close by end Sept / Q3.
Post which WG will be saving $100mn plus annually in interest expenses... With the added benefit of a rock solid balance sheet with $5bn of revenues forecast to go higher in a buoyant market... share volumes for WG have been low and I expect market will pile back in post the closing of the sale of the Built Environment business which is guided to close by the end of September 2022 - leaving WG debt free...

New CEO, New strategy, Energy Market in upswing, Orders Book up 5% per HY 2022 results, Fidelity adding as it did last week per RNS, Director Buys per recent RNS, only one recent holding RNS updating as to reduction by an II, Analyst targets around 300p post half year results... all to play for here...

[ashkv] 02/9/2022 08:13

Working Capital outflow key cause for Negative FCF - will right as contracts mature.. WG get paid.. Expect a positive FCF in H2 2022...

There was a total free cash out flow of $363 million, including a working capital outflow that was part seasonal but also reflects the continuing reduction in procurement activity from our decision to reduce exposure to lump sum EPC activity. Free cash flow was also impacted by the continued drags from exceptional cash flows. Returning the Group to delivering sustainable free cash flow is our top priority.

Our near-term priorities

While we work on our updated strategy and on addressing these issues over time, we are focused in the near-term on these priorities:


-- 1) Complete the sale of Built Environment Consulting .
We expect to complete this transaction around the end of
the third quarter of this year.
-- 2) Strengthen our balance sheet and restore financial flexibility.
The net cash proceeds of the sale will significantly strengthen
our balance sheet and restore the Group's financial flexibility.
We target a net debt / EBITDA range (excluding leases) of
0.5 times to 1.5 times and will consider the best use of
capital over the medium term, with a particular focus on
ways to improve the sustainable free cash flow generation
of the Group.
-- 3) Focus on our culture and energise our people. We have
started a Group-wide programme of engagement to energise
our people as we position the Group for its next chapter.
-- 4) Define our priority markets and growth areas. We will
focus on areas that best utilise our skilled people and
engineering expertise. We have a strong track record in
the energy industry, from oil and gas through to energy
transition, and our experiences and skills here are highly
relevant in many other sectors including chemicals, minerals
and life sciences. In the latter, we have already accelerated
our position with a series of senior-level hires so far
in 2022.
-- 5) Improve operational delivery and consistency. We implemented
a new operating model at the end of Q3 2020, moving to three
global business units: Consulting, Projects and Operations.
We will be keeping this structure and work is now focused
on driving focus and selectivity in the work we take on
and further improvements in our delivery.
-- 6) Address our remaining legacy issues. Our legacy issues,
compounded by the Covid-19 pandemic, continue to hold the
Group back by creating significant cash flow drags each
year. These include the SFO settlement, the asbestos liability,
contract losses, and litigation claims. The disposal of
Built Environment Consulting will provide significant proceeds
for the Group and most importantly solve our most significant
issue - persistently high net debt. Beyond this, we are
exploring opportunities to remove or reduce other legacy
issues, for example through the pay down of the SFO settlement
and removing the asbestos liability. We will provide more
details of our approach to capital allocation at our capital
markets day.


Order book progress in the half

Our order book (continuing operations) at 30 June 2022 was $6.4 billion, an increase of $0.3 billion (5%) compared to June 2021.

[ashkv] 02/9/2022 08:09

Per HY Results -
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
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



Debt nearly extinguished - practically minimal/near zero for a $5bn revenue firm with a $6bn order book that has grown 5% over the past 6 months and guided to grow further...

[spectoacc] 02/9/2022 07:35

Why do I keep hearing "..Leaving WG debt free", when the results to 30th June clearly showed debt inc leases $2.1bn, excluding leases $1.75bn? Free cash flow was negative £363m, unless that's reversed dramatically since June, the c.$1.6bn they'd clear from selling to BE doesn't extinguish the debt - surely more likely it's continued growing at the same run-rate, so perhaps $1.9bn by end-Sept.


"The net cash proceeds from this sale are expected to be around $1.62 billion after estimated working capital adjustments, tax costs and transaction costs. The immediate use of proceeds will be to reduce the Group's net debt."

[ashkv] 02/9/2022 07:27

WG debt extinguished in a few weeks with Built Environment business divestment guided to close by end Sept / Q3.
Post which WG will be saving $100mn plus annually in interest expenses... With the added benefit of a rock solid balance sheet with $5bn of revenues forecast to go higher in a buoyant market... share volumes for WG have been low and I expect market will pile back in post the closing of the sale of the Built Environment business which is guided to close by the end of September 2022 - leaving WG debt free...

New CEO, New strategy, Energy Market in upswing, Orders Book up 5% per HY 2022 results, Fidelity adding as it did last week per RNS, Director Buys per recent RNS, only one recent holding RNS updating as to reduction by an II, Analyst targets around 300p post half year results... all to play for here...

[jsg123] 01/9/2022 18:07

Are you thick or just about 18 years old?
Have you seen what cash is held, working capital available, tangible assets, sale monies to all but wipe out debt.
Even if its worst scenario and 700 million so what.
Idiot.

[chutes01] 01/9/2022 17:39

be careful of the old adage averaging down
wood have US litigation to the vslue of the company, why buy this now, madness
Its a total unknown, red or black
further pitfalls likely to appear, current shareholder coupons likely worthless as a new entity emerges
The RNS will likely state - Due to legacy contracts beyond our control, US court decisions, to protect current staff jobs etc.
Shareholders wiped.