Member Info for Dazpink

Never heard of Japanese energy company JERA who are involved in the JV

https://www.solarpowerportal.co.uk/solar-projects/bp-announces-offshore-wind-joint-venture-as-it-scales-back-renewables-focus

Wood will win decent contracts on this very soon, the joint venture is initially expected to focus on progressing existing projects in North-West Europe, Australia and Japan

Could be good new for WG, in the times today

BP has made its biggest oil and gas discovery in a quarter of a century with a potential multibillion-barrel find off the coast of Brazil that analysts said could be a “game-changer”.

The FTSE 100 energy group said it had made a “significant discovery” at the Bumerangue prospect about 400km offshore in the deepwater Santos basin. The well, in water depths of almost 2.4km, encountered a 500m column of hydrocarbons in a reservoir area spanning more than 300 sq km.

BP has not given any estimate for the volume of oil and gas in the discovery but Gordon Birrell, the company’s executive vice-president for production and operations, said the find was “BP’s largest in 25 years”.

Disagree, there will be others who make a pitch, it will then be exciting.

Blame this entirely on its 2017 acquisition of rival Amec Foster Wheeler for £2.2 billion ($2.7 billion),

Amec had huge debts which more then likely transferred to WG after the takeover which it hasn’t been able to bring down to acceptable levels

Amazing, Just Group reported 846M in Debt for its fiscal semester ending in December of 2024

We can dream !

You may be right Bob, takeover code rules still apply though.

Apollo have to declare firm interest and push Sidara and WG to full disclosure

Agree, JO, I do think that Kevin Gilmartin/BOD will have spoken to the same people at Apollo to keep them informed of everything that is open to Sidara.

Apollo have a great opportunity, stay silent, waiting to pounce with the knowledge of already poked around the business to know it’s worth which is crazy when you think what it was going to pay until the Pandora’s box was opened.

Don’t rule out Apollo returning to the table once results are out and Sidara make an offer.

Apollo engaged withe BOD to allow them to undertake some due diligence, Apollo decided not to proceed, more than likely for the reasons that have surfaced.

The offer then was £2.40 per share in cash, it will still a lot of value in acquiring WG, especially if it only has to pay 65p per share in cash to get it over the line, I would imagine that the debt that WG has won’t seem too much of a problem for them with deep pockets to also offer a capital injection which can be recouped within the next 3 years

Not sure about that, Wood and BP recently formed a new global strategic alliance focused on enhancing efficiency and value creation across BP's global Site Projects organization.

This alliance builds on a previous multi-region engineering services contract and aims to improve capital efficiency, starting in the North Sea and expanding to other locations like Trinidad and Tobago.

Additionally, Wood has secured multiple agreements with BP for global engineering and project delivery services, including a new three-year agreement and extensions to existing contracts, covering both upstream and downstream assets, offshore and onshore

https://www.woodplc.com/news/latest-press-releases/2024/wood-signs-a-trio-of-global-engineering-agreements-with-bp

Https://www.bp.com/en/global/corporate/what-we-do/our-reset-strategy-at-work.html

Hoping for a no deal from Wood

Interesting article regarding BP’s growth plans. Wood will benefit from this as a trusted partner.

We have a brilliant team at bp and an ambitious growth plan. Make no mistake, we are focused on delivery and doing so at pace.”

Read more from our CEO, Murray Auchincloss

Growing the upstream

We are starting up projects that provide cash flow and returns today while paving the way to grow our business in the future. We are increasing planned investment in our upstream oil and gas business by around 20% to $10 billion a year through 2027 in order to grow and strengthen our portfolio, while always maintaining safety as our priority.

We want to be the partner of choice for countries, helping them to create value from their resources while meeting the demand for more oil and gas.

In action it means: 10 new major projects scheduled to start up between 2025 and the end of 2027, and a further eight to 10 by the end of 2030, as well as accessing discovered resources and refreshing our exploration hopper.

Not so sure, the FCA will only block it if it has concerns about the acquisition, they can object to it if they believe it could negatively impact the firm's ability to meet regulatory requirements.

They can also impose requirements on the WG or its new owner Sidara or another to mitigate potential risk.

The gamble for Sidara is, do they wait until the results are released to submit a firm bid, knowing that the accounts could look very positive. This is a big gamble for them.

The suspension will be released immediately which could increase the share price to 30 - 40p range very quickly, If it then drags on further, further news on new contracts will increase the share price further accordingly which will mean Sidara having to come up with figure around the £1 mark or more to takeover WG.

It may see sense and offer a take it or leave amount above the 35p, could even go the full measure and instead of cash injection offer the same amount 85p to shareholders to get the deal done.

The cash injection can be provided later by them if it is still required in sectional payments.

Sham, wake up ! lenders won’t pull the plug

Welcome back JamesOxford, we are seeing a change of fortune in WG’s favour, your analysis is bang on.

Sham,

These waivers were only granted by Wood Group's lenders because the company was unable to publish its FY24 accounts by the required deadline. The waivers temporarily suspend the enforcement of these financial obligations, giving Wood Group breathing room to address the issues leading to the delayed accounts.

Provides temporary exemptions from certain financial obligations and covenants related to its debt facilities

ShamI89, nearly every major company has significant debt, please tell us all who doesn’t ?

WG don’t need to panic and settle debts, it just has to be able to make the payments and reduce it over a set time period.

Another extension is good, the FT source could be Sidara getting impatient, senior management at Sidara will be having weekly calls to discuss WG and the longer this takes the more it benefits WG.

Results back end of August will allow time for more positive RNS’s and also allow further discussions around sale of non core assets. WG are then in a stronger position whoever comes in for the business.

Sidara would more than likely sell off unwanted parts of the business after any takeover that didn’t align with it’s business model, this would cover the cash injection that it proposed which would mean getting WG even cheaper than the proposed but not confirmed offer.

Agree Bob, WG don’t really benefit from the takeover, it is a global company that has a great reputation that can benefit from going it alone. Orders keep coming in, debt will be reduced over the next 12 months, cash flow will be decent in 2926

Interesting, just seen this on AI

Wood Group (now Sidara) has recently secured several new contracts and extensions, including a $120 million contract extension with Shell UK for brownfield engineering, procurement, and construction (EPC) services across UK onshore and offshore assets. Additionally, they have signed a trio of global engineering agreements with bp, covering a new master services agreement for EPCm services and extensions to existing frameworks for conceptual and FEED engineering. Wood Group also achieved a record year in Asia Pacific with AUD $3 billion (USD $2 billion) in contract awards. Furthermore, they are working on a $100 million project in Iraq to reduce gas flaring and improve carbon efficiency

Wood Group (now Sidara) LOL !

Great RNS

The Transaction follows other disposals as part of Wood's strategy. In April 2025,

Kelchner Inc $30 million.

EthosEnergy $95 million

CEC Controls Company Inc. $30 million

RWG (Repair & Overhauls) Limited $135 million

Wonder which other JV/non core businesses can be disposed of to reduce it’s portfolio and debt, it is difficult to find out this information as WG don’t publish this list.

WG are on the right track clear the decks, focus on the main business that beings in huge revenues