Member Info for raghusn

Banburyboy,

Yes, it is somewhat like Robert explained.

Let's say Wood orders a generator for the project at 100 million with Rolls-Royce. Wood will raise an invoice for 100 million plus an agreed percentage, say 15% as their engineering fee. ADNOC pays wood 115 million and 100 million is paid to Rolls-Royce by wood and the rest 15 million is their revenue. It is a good model of contract for Wood as they don't have to bear the risk of Rolls-Royce's cost while bidding. This is how it is different from regular EPCH which I believe Wood have decided not to undertake anymore.

By the way as a statutory warning, I am only a lowly engineer, and that too outdated, and may not always be correct.

(typo) what a mess not message. Cursed autocorrect.

Kando, your post at 16.36.

I have spent 40 years in the Oil &gas business with wood and many others. Award of a project execution contract is not the same as buying a finished product. Before the award, the client reviews the financial situation of the contractor. He looks at the balance sheets and other financial data. A performance guarantee from a bank for the value of the project is provided by the contractor to the client before award. Which bank will provide a guarantee for a contractor who is likely to go insolvent? And foot a bill for billions of dollars? Why do you think major contracting companies form a joint venture to bid major jobs? It is to reassure the client of their financial clout as a team to withstand any unforeseen financial setbacks in execution of the project.

No client wants to get into a 3 year project contract when he is unsure if the contractor has the financial heft to complete it. Just imagine where ADNOC will be if Wood goes insolvent in the middle of the project. What a message it would be?

Kando you started your message with this:

"Well, as portrayed, including by today's Sky article, the implication is that the lenders are probably forcing everyone's hand. That short term, the cash and debt situation is bleak/irredeemable and they want a resolution that guarantees the security of their loans."

My point is if the lenders are breathing down the neck like you suggest, ADNOC won't have anything to do with them.

..It's as bleak AS THEY ARE SUGGESTING...

They are not suggesting it is bleak. They are saying someone is ready to pay 85p per share for the business and that could be the best under the circumstances. Certainly it is not bleak or on the verge of insolvency.

Kando.

If things are as bleak as you suggest ADNOC won't be trusting wood to do the Habshan project. For the uninitiated, Habshan is one of the crown jewels of ADNOC and the company will make absolutely certain that is is entrusted to safe hands.

Sidara must be squirming in their seats now. The deal they have put together with all effort may unravel and slip away from their grip. They would probably like to have a high level look at the audit findings without waiting for the nitty gritty details and make a firm offer quickly and wrap up the deal.

For all we know the next RNS might just be the one that ends the limbo and brings closure to the present uncertainty. And it might land quickly for all we know!

Https://x.com/diegobloomberg/status/1931956476446183699

Lot of noise here. Easy to get distracted. Some are self-delusional, some are nervous and trying to find some voices to shore up their position. Facts as I see are:

1. Sidara are serious bidders. They are hard boiled eggs and not some flippant suitors to drop everything and go away at the drop of the hat. Look at their saying they could reduce the bid. Of course they can, there is no binding offer, but why to mention this? This is just a tactic to play on the nerves of the seller, a old trick known to every property dealer.

2. Would there be other bidders? If so, why have they not bid so far? Answer is, there could very well be and they would appear when there is a formal bid. Have you noticed how the bids come thick and fast just before the closing date of any commercial project? Reason is, no one wants to reveal their hand and invite scrutiny before it is necessary. Coming early doesn't give any benefit, could be counter productive.

3. Is there anything sinister in prolonging the 2024 account preparation? I don't think so. It doesn't suit Sidara, they would like it to be done and dusted at the earliest. Can't see how it helps the board either. Remember the ii's, the big boys, are watching and will not take any hanky panky lightly. There could be a delay till July end but anything beyond will look dodgy and will invite severe scrutiny.

There is something happening in the background we are not privy of. Could be any rumours of a takeover bid? I think at this price level few majors might find this tempting.

Bought 17.25 and sell order with stop loss 17.75. Hoping to catch any short squeeze spike.

18.25 and going up...

Might be

For all we know, some brokers could be accumulating shares on behalf of shorts quietly. Come 30th, they will transfer the shares to the shorters in a off- market transaction. I think this is a possibility but the volumes in the last few days are below par. So shorts would be still short though not by 35m. They will have to come out and buy. Maybe today? We will open in auction?

Reference my post yesterday Wood has responded and I replied as below.

"Thank you for your email. Unfortunately, as we are in an Offer Period, we are limited in what we can say over email. Your email has been noted and shared internally.

Thanks

Simon

"Thanks for your kind response. Hope sharing the email results in a RNS with the requested information."

Very true. Since yesterday morning the shorters seem to take it down below 20 and it is immediately repulsed. Or it could be they are holding the price at this level and accumulating the nervous weak holdings through brokers to reduce their shot exposure as far as possible before direct market action to close. Not having much success volume traded is only 2.5 m so far today. Yesterday also below par.

The shorts need to close in next 5 trading days. Any RNS today will provide a clue as to when. Today? Fingers crossed.

Sent the following message to the company. I know it will be a voice in the wilderness but couldn't think of anything else.

Dear Sir,

I am a shareholder and also a past employee of your company. I am given to understand that the company shares are likely to be suspended from trading from 30th April until the ongoing audit exercise is completed.

I am very keen to know how long the suspension is likely to last as I will be denied access to sell the shares and release funds I might require. In this context, the expected audit completion date is a very important piece of information.

I believe the company is withholding this vital information from the investors. I need to know this to come to an informed decision about selling the shares or holding.

Please advise the feedback the company has from the auditors about the expected date of audit completion.

I will be thankful for your kind response.

Best Regards,

Why is there a complete silence on the expected date of completion of the audit now in progress? Is this not expected of the BOD? Especially in the present context of company likely changing hands? Shareholders need to have an idea about how long the company will not trade. All it takes is for the company to put the question to the audit company and inform their response in the form of an RNS.

Yes, correct. Apologies, looks like I panicked!