Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Delusional update overall. Too much focus on "decarbonization" and green issues, at a moment where the ESG hype is losing steam, worldwide. Like it or not, investors are increasingly reluctant to believe that "green projects" are able to provide profits and margins comparable to the "old" oil & gas business. And even more after recent catastrophic performance of EPC contractors in wind farm projects. Accordingly EPC contractors worldwide are refocusing their business towards more "conventional" (and profitable) investments like O&G developments offshore. It looks like Wood is lagging behind competitors in understanding that the wind has changed (literally) and hyping marvellous energy transitions and decarbonization projects is perhaps still making headlines, but not producing profits (and benefits to the SP accordingly).
Not a great update today IMO. Pretty flat and nothing to get the share price moving although its another update without any surprises which is unusual for this one!!!
Sold now at 1.53p. That was a Spiv's turn (anything under 10% profit).
The hope was justified and it continues to be a "lucky" share for me.
Actually I'm "Buying here" I sold out while the bid was on and am now buying back, same number of shares but 65p lower. This may be hope over experience !
Share price back to what it roughly was before the Apollo bid but can't see Apollo coming back on this one - they have moved on and have the experience and cost of the previous foray into Wood.
Trading update on the 9th November may however change that. I still think the SP is low but the market seems to dictate otherwise and updates will only keep it where it is - we need something more to get this one moving.
All IMHO as always
I do not think the banking sector risks have diminished.
But at the time of print, the markets seem to broadly feel otherwise.
Therefore, they might revisit this name at the earliest opportunity, although a few weeks is a long time to look ahead in this type of climate!
If I were Apollo, I would be more inclined to see how things were shaping up around February or so.
That said, CVX just announced a take out of Hess Corp (paying too much, IMO), so who knows?
The lack of general talk of M&A activity in this name is probably a good thing, insofar as it might make it a more likely prospect right now.
Apollo’s RNS on 15 May said they were not going to make a formal bid for Wood, in accordance with Rule 2.8 of the Takeover Code, unless certain prescribed events happened…like someone else bidding for Wood. This constraint on Apollo making another approach lasts for six months.
So, Apollo would be free to approach Wood again after 15 Nov (15 May + 6months).
I think Apollo backed out in May, because, at that time the American banking sector was in turmoil, and some regional banks were in danger of going bust. My guess is that Apollo thought it would be unwise to spend £1.6B in a cash takeover with such a precarious banking environment.
Six months on, the banking risks appear to have diminished. So, given that Apollo spent a long time courting Wood, it is possible that Apollo will try to finish what they started, and make a formal offer for Wood. Does anyone else think this might happen?
Agree entirely, my portfolio is exactly the same. Holding a small quantity in case it ever returns to previous highs, one lives in hope !
Finding it hard to keep the faith with this one at the moment. rest of my portfolio is doing great over the last week or so but this one seems to buck that trend and general market sentiment. Looks like it will stutter about until the next update or some good news on contracts etc.
I just looked at the graphs for PFC again and it looks to me like it has flatlined....that and volumes. Seems barely anyone touching those at the mo. Their bonds still in the bin also. Big gamble IMHO. Hope it pays off for you Mav.
Ha. Over here trying to boost some very low volumes across there are you?
Closed the gaps yet?
That's if they manage to last for the full H2! With the material risk to remaining as a going concern. Still no news on the monies they say they need in from projects in close out or from advance up front payments on stuff they are yet to do.
I will hold tight here for now.
Holders cast your eye at an industry peer up 5% since yesterday - looks like it is set to break out. I’ve taken a little off the the table here to add there and will return.
Bought a few here on the last drop, but thought I’d share the potential of a fellow peer - Petrofac (PFC) looks set to have a bumper H2
Markets are a bit crazy at the moment with relatively large swings in share price. Wood still has a way to go to gain back market confidence and although results recently and some pretty good contract awards I suspect the 2023 full year results will be watched closely as their revenue etc. is back end loaded.
As for another suitor - absolutely no idea. Still an attractive target at this level but Apollo saga still in potential buyers mind I suspect.
All just my opinion of course
Market response this morning somewhat muted, had hoped for more.
Will WG attract another bid in 2024?
Https://www.londonstockexchange.com/news-article/WG./wood-and-harbour-energy-agree-330m-partnership/16108346
I own both Wood and Harbour. This is a very pleasing contract win for Wood Group.
All IMHO DYOR
Happy
"Wood has been selected as a preferred bidder on Scottish and Southern Electricity Network (SSEN) Transmission’s Accelerated Strategic Transmission Investment (ASTI) framework. This investment will support the upgrade of the onshore power transmission infrastructure to support future energy demand."
Splendid
The Apollo pulled bid was 17 April 2023 to 15th May 2023.
Now 156p
However, Midas highlights that Wood Group could still be undervalued, currently trading at less than nine times forward earnings for 2024. It cites comments from Investec, which said that if the stock was trading in line with the sector average valuation ratio, the shares would stand at 245p.
PFC front runner for this contract and could well see the RNS confirming next week
FYI: for a bit of balance:
https://www.oilandgasmiddleeast.com/news/adnoc-close-to-awarding-500-million-contract-for-major-carbon-capture-project
GLA
Could be PFC though, I'm happy either way holding both at the moment.
GLA
Can only see headline but am I correct in thinking Wood have bagged this contract?
https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.upstreamonline.com/exclusive/adnoc-awards-prized-engineering-contract-for-multibillion-dollar-gas-facilities-expansion/2-1-1504387&ved=2ahUKEwih4pSb7_SAAxUJXEEAHRylDCYQFnoECAwQAQ&usg=AOvVaw1O-0R2-2JjfOdiQG0Sg5of