Member Info for CheshireLad

CMD seems a long time but it'll be here before we know it.

Shorters thriving in low volume market, remember they are the only ones making monies at these levels, and once the asset sale approaches, end of September is my guess, then depending on the reaction to the SP, we'll be able to gage a lot more at that time. Don't be wishing your life away, but the end of each of the following 3 months cannot come soon enough for suffering shareholders. Another thing to remember is, in the short-term, if you're not paying a dividend why bother about the shareholders when trying to formulate a business strategy!

I agree, pressure being put on the board to deliver a clear vision for the future. The $700 million headline figure is laughable, to a certain extent it's a known, and has been for a while, and any agreement would be significantly less, closer to the $100 million figure quoted and more than likely less than that. Shorters have been having a field day, the volume leading up to the half-year results was greatly weighted towards the declared buys, as you possibly would expect before any announcement is due. However, due to the treading water announcement their opportunistic nature has gotten the best of them and driven the price down another 10% since then. Do they feel they can press any harder before the asset sale and CMD, who knows?

With the appointment of KG, who originally came to Wood from Jacobs remember, there is obviously a clear vision within Wood for the future and plans are afoot, it's just that future is on hold a bit longer than most long suffering shareholders wish. I hope KG can sweep out the legacy of RW & DK, the culture of nepotism, and let's say politically correct appointments. Shareholders want to invest in a successful forward thinking business, and the first thing to start with is getting the correct people in to the management positions that matter, whilst clearing out the top heavy deadwood management structure which is, as far as I've been informed, is to centrically focused on self rewarding those with little or no expertise, and pass the baton to those that actually add value to the business and understand the problems faced when making & mitigating decisions regarding multi-million pound engineering commercial contracts.

Can anyone remember, way back when, who Wood employed to look at the market for potential buyers?

This is from the strategic review & trading update - 12/11/2021:

"The scope of the review will consider a range of options to best unlock value from this part of the business for shareholders that Wood believes is not currently being recognised in its market capitalisation. It will also assess how best to take advantage of the positive trends and investment opportunities in energy transition and industrial decarbonisation where the company is already a global leader."As of today, they are certainly testing their shareholders patience!

Hold on until November then ride the new year upturn, unless a attention grabbing contract win is announced?

If we think no special dividend will be paid, and I didn't say when, then what are thoughts around the proceeds of the sale and what would be sensible ratios for Wood regarding debt reduction and allocation of capital for acquisitions, and even when those are defined and known do we think Wood is still a sitting duck for a cheap takeover themselves?

Is anyone thinking that a special dividend might be paid once the sale is completed?

FYI:
https://www.woodplc.com/news/latest-press-releases/2022/wood-awarded-epcm-contract-for-new-e-waste-metals-recovery-facility

FYI:

https://www.energyvoice.com/oilandgas/europe/petrochemicals-europe/434179/wood-secures-100m-contract-for-ineos-olefins-plant/

FYI: https://www.woodplc.com/news/latest-press-releases/2022/wood-signs-global-engineering-and-project-support-master-services-agreement-with-chevron

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

https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7935231/AIM-oil-companies-take-action-over-bulletin-board-lies.html

The past is the past, and the future is up for grabs. Buy them while you can.