The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Dontknow
I was tempted to snap some up today but didnt. I got some a week or so ago and Im burnt on them at the moment.
Didnt snap today as Im starting to think there may be better opportunities in this beat up market which will give me some dividend and less risk. I dont think this one is bad - asset sale may give dividend back etc. but Im losing the stomach for it at the moment. See what tomorrow brings - you may get your 150p!!
Pokerchips
all good points and who knows what is around the corner.
My main concern in all this as it relates to Wood is the fact they are not really an oil and gas service company now.
Im so far in now its just a case of wait and see. So glad I dont "need" to cash out at the moment
Pokerchips
Thats how i see it and if that is what it is then the delay to the announcement of 2021 accounts is perplexing especially given they are saying guidance for 2021 and 2022 remains unchanged. I have a niggling feeling there is more to this.
Not really about how us poor smucks read it - its the headline which seems to be having the effect on the price. As I said before it doesnt bode well for the sale they are currently trying to complete - what else is buried?
All good points Pokerchips.
My concern now is the sale they trying to make. I know thwy had suitors but this news is related to Legacy AFW business and the consultancy piece they are selling is legacy AFW. As a buyer I'd be very very cautious
This is going to take one hell of a beating - albeit just on the headline. Overall news on Russia will hit the whole market and oil price will rocket.
As you say guidance is still the same for 2021 and 2022.
Really just holding in there till it settles a bit.
https://www.woodplc.com/news/latest-press-releases/2022/wood-extends-two-decade-long-relationship-with-equinor
The contract extension, valued at around $170 million, continues an existing multi-asset framework agreement with Equinor, which was initially awarded in 2015 and will now extend through to 2026.
Pokerchips
They mentioned on teh webcast that while they announced the strategic review in November it was being looked at for some time before that so suspect the options and any advise/suggestions from Blackrock were well advanced befor ethe November announcement
Pokerchips
I was also a little concerned at the selling off of what is considered a pretty damn good part of their business. During teh webcast lots of questions around this and what the intent is with the proceeds. Pretty well answered in that proceeds will go into three 'buckets"
De Leveraging (free cashlow)
Investment (Energy Transition and Decarbonisation)
Shareholder (Special/restart dividend/Share buy back?)
I have to assume getting rid of a high performing business they believe they can target aquisitions which will compensate and better fit the energy transition/decarbonisation piece.
Interestingly their oil and gas exposure is going to increase overall once they sell but they seem to believe the business they are getting from oil and gas is in the ernegy transition and decarbonisation piece rather than teh traditional project and maintenance support.
Overall I thought the webcast was quite good and certainly more upbeat than in teh past.