Stock to Watch: Wood Group
By Edmond Jackson | Fri, 24/08/2012 - 00:00


http://www.iii.co.uk/articles/49314/stock-watch-wood-group

Wood Group on track as markets remain favourable
Fri 05 Oct 2012

WG. - Wood Group (John)


LONDON (SHARECAST) - Oilfield services firm Wood Group continues to be confident of hitting full year profit targets, with conditions in energy markets remaining favourable.

"We anticipate strong operating cash flow in the second half, and our strong balance sheet provides a robust platform for growth," the group's interim management statement said.

More to follow ...

Interim Management Statement

Haven't traded these for a couple of years, results thursday. Worth a wee punt if it can bounce of 200DMA. Left a limit buy on the spreads (Mar Cont.) @ 782.0

Long 755.0 March contract on spreads.

Wood Group drops after mixed update - UPDATE
By Benjamin Chiou

Thu 13 Dec 2012

WG. - Wood Group (John)

Latest Prices
Name Price %
Wood Group (John) 733.50p -4.55%

FTSE 100 5,930 -0.27%
FTSE 350 3,166 -0.25%
FTSE All-Share 3,101 -0.25%
Oil Equipment, Services & Distribution 24,142 -1.91%

LONDON (SHARECAST) - Energy services giant Wood Group has said that it expects to deliver good growth this year, with overall conditions in energy markets remaining 'favourable'.

However, shares were down by 4.36% at 735p in afternoon trade on Tuesday after the company reported mixed conditions in its Engineering and GTS divisions.

"Overall, performance for 2012 is anticipated to be in line with expectations," Wood Group said."We anticipate further good growth in 2013 and remain confident in the longer term prospects for the group's market leading services in oil & gas and gas fired power generation markets."

The company expects its Engineering division to report over 30% growth in 2012 earnings before interest, tax and amortisation (EBITA).

In upstream, while the group is making progress in its projects in Australia and Angola and remains active in projects in the Gulf of Mexico, it did admit that it expects "some reduction in activity" in the Canadian oil sands market in 2013.

In subsea and pipelines, the company said that it continues to see good activity levels in onshore pipelines in North America. However, in downstream, Wood Group said that the market outlook remains "subdued", though it has seen some improvement in the second half.

Elsewhere, Wood Group PSN, which provides brownfield services to the oil and gas industry, has been boosted by a strong performance in the North Sea and in North America.

Meanwhile, turbo-machinery division Wood Group GTS has benefitted from the contribution from its oil and gas related activities. However, it also revealed that it has recognised reduced margins on its contract with GWF.


Credit Suisse cuts forecasts

Credit Suisse said that it has cut its Wood Group forecasts for 2013 and expects consensus forecasts to come down also, largely on softer GTS profits.

“In GTS, large lump-sum contracts (GWF, as flagged earlier in the year) are less profitable than hoped, and we have brought our earnings down modestly, offset by anticipated good demand from higher run-time on US turbines,” the broker said.

Credit Suisse maintained its ‘neutral’ rating and 925p target price for the stock, “largely as we believe this high-quality name is fairly priced at current levels”.

Thanks DC.

Stopped out on the spreads @ 735.0 -20

Haven't traded these for a few years and boy does it show, stop way to tight. Back above 200 day moving average after a hefty move up today. Waiting for Jan before jumping back in, if or when, either way.

Edit - Christmas spirit weighing heavily looked at chart above before checking sp 743.0 so I am talking bollocks :O) Cheers MAM quality.

If it closes above 200DMA will be sorely tempted to get back in, or will I? wish I'd never bothered, just goes to show trade what you know, otherwise boot up the backside cartoon will get you every time. :O)

Perfect chart, sadly now and again patience is a bloody nuisance.

Brilliant! lesson learned I'm a muppet trading this stock with tight stop loss. Will move on cause attempting revenge by chasing will lead to tears guaranteed :O)

Wood Group Gulf of Mexico contracts valued at $550M

Supporting nearly 1 million BOPD additional capacity

HOUSTON, July 9, 2013--Wood Group's business in the Gulf of Mexico is robust,
with annualized revenue in the region totaling more than $550 million. Activity
is being driven by three of Wood Group's business units - Wood Group Mustang,
Wood Group Kenny and Wood Group PSN - with more than 3,500 personnel providing
engineering, operations & maintenance services across the region.

Wood Group Mustang is a market leader in the design of topsides for floating
facilities and has designed more than half of the 42 floating facilities
currently installed in the deepwater US Gulf of Mexico. Currently, the
greenfield process & facilities engineering business is providing engineering
services for the topsides of 10 Gulf of Mexico facilities, with the combined
potential to add almost one million barrels of oil per day (BOPD) to the world
energy supply. The engineering services being provided range from:

* pre-front-end engineering design (pre-FEED) to detailed design for six
greenfield projects, including two in Mexico's Bay of Campeche;

* follow-on services for five platforms; and

* full main automation contractor (MAC) services for two platforms.

StockMarketWire.com
Liberum Capital cuts John Wood Group to sell from hold, target cut from 736p to 610p

Wood Group secures major BP contract Wood Group has been awarded a five year contract with an estimated value of $750million from BP. Under the contract Wood Group PSN (WGPSN), will deliver engineering, procurement and construction services to six UK continental shelf (UKCS) offshore upstream assets and the Forties Pipeline System (FPS) onshore midstream facilities in Grangemouth.

Effective January 2015, the contract will create 150 new jobs and secure more than 700 existing positions. This is WGPSN's largest contract award in 2014 and includes an option for two, one-year extensions.

WGPSN already provide engineering, procurement and construction services for six BP offshore assets - Clair, Magnus, ETAP, Andrew, Bruce, and its new Glen Lyon FPSO which is currently being constructed and is due to come online in 2016. This is the first time WGPSN has secured a contract for the FPS onshore facilities and adds to the company's current contract to support BP's Sullom Voe Terminal in Shetland.

Dave Stewart, UK managing director of WGPSN said: "Wood Group has more than 40 years of experience working with BP globally and this new contract is testament to the partnership and understanding we have developed.

"Providing this combined service across upstream and midstream operations for the first time positions us well for continued excellence in delivering safe, collaborative and innovative services directed at maximizing productivity and efficiency across BP's assets in the UK.

In the UK, Wood Group now employs more than 10,000 people working onshore and offshore.

despite today's little uptick, this is the wrong sector to put money into (says he who holds PFC!)

ITM (tech stock) are ticking up but the oil sector as a whole is hopeless at the moment.....very few stocks worth holding.....I'm not even bothering with it at all at the mo...

Still worth watching, imo as I think there will come a time when this sector is back in fashion. Just a matter of having some available cash when that happens!

StockMarketWire.com
John Wood Group said while its H1 financial performance will show the relative resilience and flexibility of its asset-light, predominantly reimbursable model, it will be down on H1 2014 reflecting challenging conditions in oil and gas markets.

"To help offset the impact of lower activity and pricing pressure, we are delivering savings significantly in excess of original targets from our cost reduction initiatives, and continue to focus on utilisation," the company said in a pre-close trading update.

"We remain confident that our market leading businesses and breadth of capability position us well to deliver for our customers. There is no change to overall guidance and we continue to anticipate that full year EBITA will be broadly in line with analyst consensus."

NEW AGREEMENT
Wood Group said it has entered a $250m agreement for operating services on Central Area Transmission System

Wood Group has entered into a $250m agreement with Antin Infrastructure Partners (Antin IP) to provide operating services for the Central Area Transmission System (also known as CATS) in the North Sea for up to 10 years, subject to certain regulatory and other consents.

Returning to the pre-close trading statement:

ENGINEERING
"Upstream activity levels remain subdued, however we have seen a good contribution from larger detailed engineering projects including Det Norskes Ivar Aasen in the Norwegian North Sea and Hess Stampede in the Gulf of Mexico.

"In the second quarter, we started FEED work on our six year Offshore Maintain Potential contract with Saudi Aramco awarded in March. The current high volume of pre-FEED, FEED and concept work includes a number of leading global offshore developments and is a positive indicator of future activity levels, although the timing of sanction of detailed engineering scopes remains uncertain.

"Our subsea business has been active on larger projects for BP in the Caspian and the North Sea, Zadco in Abu Dhabi, Tullow in Ghana and Chevron in Australia. However, activity levels have reduced and we are seeing fewer large subsea capex projects coming to market. Recent new awards include FEED for Woodside in Australia and for Talisman in Vietnam and a five year maintenance contract for subsea well control as part of a joint industry project.

"Our onshore pipelines business is performing robustly in the US where customers are looking to improve transportation to downstream facilities, and is delivering engineering and construction management services for customers including Energy Transfer Company and Dow.

"Our downstream, process and industrial activities are also performing well, in part due to the impact of lower feedstock prices. Following the successful completion of early stage engineering on a refinery modification project for Flint Hills Resources in the Eagle Ford region, we have recently been awarded the detailed engineering, procurement and construction support scope."

PSN
"In the Americas, the US onshore market continues to be impacted by reduced demand and pricing pressure in our capex related activities including fabrication and site preparation and, to a lesser extent, midstream construction services.

"Our ongoing opex focused activity, which accounts for over half our onshore work, has also experienced pricing pressure and some lower demand but has been less affected. In May, our Trinidad joint venture was awarded a new five year $250 million contract to provide engineering, procurement and construction services to BPs offshore facilities.

"In the North Sea, we are maintaining our leading position in maintenance and brownfield engineering work and have good visibility under longer term contracts. We are seeing the impact of reduced project and non-essential maintenance work, though continue to work alongside customers towards efficiency improvement.

"Following new five year awards from Total and Enquest, we secured a new $250 million contract with Antin Infrastructure Partners for the operatorship of the CATS terminal and pipeline in the North Sea. The contract was secured in collaboration with Wood Group Kenny, leveraging our leading expertise in pipeline operations and extending our duty holder capability into new markets.

"In our international business, longer term contracts in Australia and Asia Pacific are progressing and we see a number of near term opportunities for growth in the Middle East and Africa.

"In Turbine JVs, underlying performance is in line with 2014 and our primary focus continues on actions to improve performance in EthosEnergy including capital efficiency and cost reduction initiatives."

FINANCING AND DIVIDEND
"Our strong balance sheet provides security and flexibility, and net debt is slightly below the lower end of our preferred Net Debt: EBITDA range of 0.5 times to 1.5 times. Our intention remains to increase the dividend per share by a double digit percentage from 2015 for the medium term."