Nothing to worry about, general market sentiment based on general economic outlook. I still feel on track to announce this quarter and finalize in the 3rd quarter, IMO.
Why @Colonel would you float the idea on the PFC board that the Wood asset sale is £2bn and a certainty then by the same token on the Wood board float a different narrative that Wood might surprise the market and not sell the built environment consulting business unit?
I don't think you should be doing that.
The sale is going to go through :-) Bye Bye BR
"Strategic review of Built Environment: Board has concluded that a full sale process is the best option to deliver value for our shareholders and this process is underway. A sales agreement is expected to be announced in Q2".................nailed on!!!!
Wood is certainly more sustainably focused moving forward after the acquisition of Amec Foster Wheeler a few years ago, large projects with methane, solar, and EV charging rollout to name but a few. Plus their office in Glasgow is hosting elements of COP26.
The drive to more sustainable fuels and methods will be driven by all kinds of micro and macro factors along with all kinds of stakeholders, and it won't be as quick as some would like. However, either if it's a slow gradual transition or much faster one over the coming decades, honestly, who do you think will be delivering these projects, will there suddenly be a new crop of multi-national engineering companies providing all the services required for this sustainable transition, the short answer being no. The same service companies currently providing, delivering, and maintaining the fossil fuel industry and the burgeoning renewable sector will be the same ones. After the recent years M&A due to the last cyclical low oil price period, we may well see some more M&A, but next time one guesses it will be driven by the smaller renewable sector companies being snapped up by larger multi-national upstream & downstream companies, and if you look carefully it's actually been in operation for some years.
Overall Wood is very well placed due to its assets being it's employee's, who ultimately provide services to whichever engineering, fuel, or technology based solution is in vogue at any given time. It's a shame the market pigeon holes certain service providers, do some research Wood is certainly not a typical fossil fuel orientated services provider anymore, sure it's still provides O&G services as long as someone is paying for that service, why wouldn't they.
Currently undervalued and easily will bounce back I suspect once COP26 has died down, a few more contracts are won, possible reinstatement of a small dividend, and as we move in to the new year towards Easter 2022. Still looking medium term but should easily present a 50% uplift from current levels, it just depends how long you are prepared to wait and how long before AKO, Blackrock et al lose interest and decide to cash in. Happy to keep holding through 2022 and buy more at these levels.
JV for potential buyout or takeover further down the line!!!!
GLA
Is it my imagination, or has this whole UKOG saga been inextricably linked to Brexit, the timeline of events are strange in so much the delays, lack of information, etc etc run parallel with Brexit.
GLA
Wouldn't want to be out of this over the weekend ;-)
GLA
The past is the past, and the future is up for grabs. Buy them while you can.
OTC announcement imminent.... :-).....along with
CBD brands, Chill & Zoetic distribution deal progression both in the UK & USA
CBS brands, new products
Legacy O&G asset sales progression including ongoing bond payment receipts
Outdoor hemp harvest confirmation
Hemp seed genetics program with potential sales
Etc.....
Good find Trill.
Our legacy O&G wells are in the top 5% producing wells in the DJB, and, even though the shale wells are a decline curve we are still pulling in $150k per month from the carried 7.5% interest. Not only that the 7.5% carried interest also applies to any future wells on the leases. If the logical derivation of value is determined from applying the formula, then the legacy O&G wells will bring in closer to my expected amount $3 -$4 million. I'm not saying that will happen, there are many micro & macro variables involved, however, I think we can be optimistic regarding the value placed on ED alone, and, it hopefully, will surprise a few and make the balance sheet look more positive. This will provide assurances, and a platform, to private, (both UK and USA Based), institutional, and HWI's investors the business is moving in the right direction under a management and leadership team which have a firm grip on spending combined, whom also have a clear and concise business strategy for the burgeoning hemp & CBD industry. Although I would like to see more detail a.s.a.p. regarding the fast moving CBD side of the business, in particular the sales and distribution side of things, I don't expect to hear anything on seed genetics or seed revenue for a few months, but I do like surprises. Hopefully some good RNS' over the coming months with regular none RNS news relayed via the various social media platforms, including LInkedIn. You do the maths!
Why sell the O&G assets, well as Blue and JJ state, the current wells are a declining asset with higher costs. A nice analogy would be a PHP agreement like with cars, when is the best time to sell, cash in the equity, or, continue with a cost prohibitive asset, unlike the hemp side of the business. Originally the company was set up to take advantage of the downturn in the O&G sector, which I think it did rather well, albeit the shadow of RP's bravado still stinks. It was a difficult job to get ED up and running for such a small O&G player, no doubt about that. But now is the right time to move out of that sector, bin the old car, for pastures new and take advantage of the hemp revolution . I'm sure the HWI's will want a clean break and may only show their hand once that clean break has been made. Regarding the timing of any such O&G sale we might see a deal in the near term but with rights not exchanging officially until the new tax year? It's quite possible we could receive a payment for the assets before the tax year end but with revenue up until the end of March 2020 still be receiving and reflected accordingly on our balance sheet until the official sale is finalized. Also, we should expect to see confirmation of seed revenue and a more accurate representation of the Chill & Zoetic product sales. All in all there is plenty of +ve news to arrive over the course of the next months and anyone who doubts that is being disingenuous.
Sure there will be times when we feel the quiet periods are too long, but make no mistake this company is very different to the previous incarnation. Did I not mention the OTC listing being imminent, UK distributor has take all available UK stock, Mr Checkout proceeding as planned to supplement deals with Ox and now other identified online distributors in the USA. New products announced and due, and still a relatively low number of shares in circulation with NO "new" additional shares being made available to US investors.
How can all this be a negative, the answer it isn't. You only have to do the maths.
I would say slightly optimistic figures, however, when you include carried interest on any new wells, and the rights being on very good proven ground, I would be extremely happy with circa £4 million+. As the recent research note by Mr Hitchens suggests once legacy O&G assets are sold the balance sheet will look far better, and with equivalent income streams from Chill, Zoetic, feminised seeds sales, bond payments etc. Lolling very good from here. Wouldn't want to be out of this over the course of weekend, and definitely once we move in to November and push to New Year seed sales.
Can only be a positive, anyone who say it's not is just disingenuous.
Now off work for a few weeks so will be keeping a closer eye on the LSE posts more than in the past.
Wouldn't want to be out of this over the weekend, and that is by no means disingenuous! Do the math!
Looks like the Acme rocket has been sourced after that close, bring on tomorrow and imminent OTC listing launch.
and a rocket when the SP really starts to move!
Possibly not guaranteed but I'm sure we have the relevant microscopic technology to confirm or dis-confirm. Either way, if we have excess seeds, biomass, etc from the outdoor acreage, that can only be a good thing.