Member Info for Aucuba

andsoforth
Agree on the point re debt reduction but interested in your reading on revenues. The release states
" On a like for like basis2, adjusting for the disposals of the nuclear and industrial services businesses in Q12020, first half revenues will be down around 11% on H1 2019"

Highlights from Trading Update

· Protecting margin: early actions taken to maintain utilisation and align overheads with reduced activity levels. H1 margins on a like for like basis down c70bps. Adjusted EBITDA margins in ASEAAA maintained and improved in TCS. ASA margins impacted by cost overruns on the legacy energy projects. Actions to deliver >$200m overhead savings in FY 2020 already complete

· Continuing to execute work: Like for like2 H1 revenues down c11% and adjusted EBITDA down c19%. Relatively robust activity in chemicals & downstream and built environment markets. Increased renewables activity

· Continuing to win work: Secured $1.3bn of new orders in April and May reflecting the breadth of our business. Evidenced by EPC work for GSK, onshore wind and solar EPC awards in the US, EPCm award to increase production of an oilfield in Iraq, LNG renewal in Asia Pacific and a five year framework agreement with the US Navy for engineering, design and maintenance of fuel installations

· Strategy to broaden business reflected in changing profile. Renewables activity up 4% and upstream & midstream activity down 5%

· Strong balance sheet and liquidity. Expect net debt3 at 30 June 2020 to reduce from $1.43bn at December 2019 following Q1 disposals

· FY2020 outlook: Remain focused on protecting our margin in line with our strategic objectives whilst prepared for a broad range of outcomes on activity

Nice contract win although i dont see it as "massive" What i think is more important fro the medium/long term is the number of quality contracts they are winnningh which are not oil and gas related. Diversification and a move into more higher value service offerings is welcome and indeed has been their intent since teh acquisition of AFW some time back.

Just cant get a break on this one. Despite drop on shorts during May this is still taking big swings in both directions.

Yeah. I think this is going to be like this until the trading update on teh 19th June.

I wish!!

Another drop today. This one cant hold up

bigsmoke
Are you saying shorts have not changed?
Shorts have gone down to 4.5. The link within this site is not correct and appears to be "stuck' at 9.2%

millertime1978
They are seperate from the share scheme and not specifically mentioned. Management cash bonuses are against specific personal objectives and will been paid if these are acheived. The share bonuses are of course declared as "purchases" through the RNS service and as i said in my earlier post these have been made for 2019.

JKROBERTSON
I think what irks me more than anything in all this is not the apparently small decrease in salaries for senior management - it is just a sweetner as you say - but the directors/senior management all had their shares allocated to them from 2019 performance while shareholders got nothing. The value of those shares will probably also benefit from the pulling of the dividend! This does not sit right with me.
I still believe Wood has made the right decision for future shareholder value given the circumstances.

lingumvitae
While I agree a 10% reduction in remuneration does not seem commensurate with overall reduction in dividend at least they say they have done somehting in this respect. I havnt read of other comapnies doing anything with executive remuneraion - not to say its not happening but if it is its not "out there".
I also think there was some good points in teh statement - 40,000 of 60,000 workforce still working (remotely etc.), $1.4bn of headroom against debt facilities , capital investment reduction (on internal projects). All of this is teh action of a prudent company in my opinion.
Wood have at least got in front of this and posted an update now while I think other companies are still procrastinating.
Just my thoughts in these volatile times.

Yeah Wood also have an AGM statement dues on the 7th May. I still think these two will keep the 2019 final dividends then cut/stop 2020 interims when they provide their 6 monthly trading updates. By then they should possibly be clearer on the potential impacts of oil price and Coronavirus but who knows!

Pokerchips

Very well summarised. and I tend to agree companies going forward will take a very cautious view on dividends but do you believe Wood will pay the diviudend due in May (final for 2019)?

but ..... presentation of full year results did say no allowances had been made for any potential Coronavirus impact and oil has continued to fall since then.

I agree dependancy on oil and gas is a lot lower than it was about 5 years ago but its still there and I also agree any cut will severly dent investor confidence.

SailorBeware

I doubt they considered the double blow from Coronavirus and oil price when they wrote this only a few short weeks ago. I’m still not sure shareholders will approve the the final dividend payable in May from 2019 performance at the AGM.

TopCatz
As far as I canm see 17 years of continuous dividend growth from Wood. 10 year dividend growth lies over 13%. They have also siginificantly reduced their exposure to the oil and gas market over the last few years since the AFW acquisition.

I think the final dividend of 23.9c will be paid. It’s for 2019 performance but I agree the interim dividend payable later in the year is really at risk.

Stocksbof52
Link does not work

Bearishbull
Thanks for that. I'm certainly keeping the faith!. The share price is obviously a concern for me at the moment but its the dividend I am in this for and although they have a nice payout coming in May I am worried about it going forward.

Lots of selling after trhe close at less than the closing price whatever that means!!!!