Wood Group, to invest, or not?
Wood Group plc, now known as Wood plc, is a global engineering, project management, and consulting company in the energy and industrial sectors. It was founded in 1912 and was originally focused on the timber industry. Over the years, the company expanded its services to various sectors, including oil and gas, power generation, infrastructure, chemicals, and environmental consulting.
Wood plc provides a wide range of services, including engineering design, project management, operations and maintenance, construction, and environmental services. The company’s expertise covers upstream and downstream oil and gas, renewable energy, power generation, industrial processes, mining, and transportation.
Wood plc operates in over 60 countries and employs thousands of people worldwide. The company has worked on numerous high-profile projects and has a reputation for delivering complex engineering solutions. Its clients include major energy companies, government agencies, and industrial corporations.
In recent years, Wood Group plc has undergone significant changes. In 2017, it completed the acquisition of Amec Foster Wheeler, a major engineering services company. As a result, the company rebranded as Wood plc to reflect its broader service offerings.
Please note that my knowledge cutoff is in September 2021, and there may have been further developments or changes regarding Wood plc since then.
Wood Group plc, now known as Wood plc, has seen various stock price trends over the past decade. In 2011, the stock price of Wood Group started the decade at around £6.00 (GBP). It experienced fluctuations over the years, influenced by market conditions, industry trends, and company performance. In August 2018, Wood Group plc, now known as Wood plc reached the peak of its stock price at 780GBX.
It continued to soar on top until October of the same year. However, after that, it has continued to plummet down until it reached its lowest stock price recently at 139.90GBX in May 19, 2023. Today, its price opened at 141.50GBX and closed at 139.70GBX. This is a decrease of 0.61% or 0.87GBX. As with all stocks, the Wood Group Share Price can be influenced by a variety of factors, including market conditions, company performance, and investor sentiment.
Who is Wood Group?
Wood Group plc, now known as Wood plc, has an interesting history that dates back to its establishment in 1912. The company was founded by Sir Ian Wood in Aberdeen, Scotland, as a small ship repair and marine engineering business known as Wood & Davidson.
Initially, Wood & Davidson focused on providing services to the local fishing and shipping industries. However, over time, the company expanded its operations and diversified its services into various sectors, including oil and gas, power generation, and industrial engineering.
In the 1960s, Wood & Davidson started providing services to the emerging North Sea oil and gas industry. This marked a significant turning point for the company, as it became heavily involved in the offshore sector. Wood Group expanded its capabilities and began offering engineering, maintenance, and construction services to support oil and gas exploration and production activities.
Throughout the following decades, Wood Group continued to grow and evolve. It expanded its international presence, acquiring and partnering with companies to strengthen its capabilities and broaden its range of services. Notable acquisitions and partnerships include Mustang Engineering, JP Kenny, PSN, and Amec Foster Wheeler.
Wood Group plc went through several rebrandings and name changes to reflect its changing business focus and portfolio. In 2017, it completed the acquisition of Amec Foster Wheeler and adopted the name Wood plc to signify its transformation into a more diversified global engineering and consulting company.
Today, Wood plc is a leading international engineering company, providing a wide range of services to the energy and industrial sectors. It operates in over 60 countries, employs thousands of people, and has a strong reputation for delivering complex engineering solutions.
Wood Group’s Main Competitors
Wood Group (Wood plc) operates in the engineering, project management, and consulting sectors, particularly in the energy and industrial segments. As a diversified company, it faces competition from various firms in different areas of its operations. Some of Wood Group’s main competitors include:
- Schlumberger: Schlumberger is a multinational oilfield services company that provides technology, project management, and consulting services to the oil and gas industry. It offers a wide range of solutions, including drilling services, reservoir characterization, production optimization, and integrated field development.
- Halliburton: Halliburton is another prominent global provider of services to the energy industry. It offers a comprehensive suite of products and services, including drilling and evaluation, completion and production, fluids and chemicals, and consulting and project management.
- TechnipFMC: TechnipFMC is a leading global provider of subsea, onshore, and offshore solutions for the oil and gas industry. The company specializes in engineering, construction, and project management services for oil and gas production facilities, pipelines, and subsea systems.
- Aker Solutions: Aker Solutions is an international oil services company that focuses on engineering, design, and project management for the energy industry. It offers expertise in offshore and onshore field development, subsea systems, and renewable energy solutions.
- Worley: Worley is a global engineering and construction company that provides services to various industries, including oil and gas, chemicals, power, and mining. The company offers engineering design, project management, and consulting services across the entire project life cycle.
It’s important to note that the competitive landscape can evolve over time, and there may be other companies competing with Wood Group in specific market segments or regions. The level of competition can also vary based on specific projects or contracts.
Wood Group Investment Advantages
Investing in Wood Group plc (now Wood plc) can be attractive for several reasons. Firstly, the company operates in the energy and industrial sectors, which are vital components of the global economy. As the demand for energy continues to grow, Wood plc is well-positioned to benefit from its diversified portfolio of services, including engineering, project management, and consulting. The company’s extensive experience and expertise in these sectors make it a trusted partner for major energy companies and industrial clients worldwide.
Secondly, Wood plc has a strong global presence with operations in over 60 countries. This geographical diversification provides the company with exposure to a wide range of markets and opportunities. It allows Wood plc to capitalize on regional growth trends, mitigate risks associated with specific markets, and pursue projects in emerging economies.
Furthermore, Wood plc has a track record of delivering complex projects successfully. Its capabilities span the entire project life cycle, from concept development and engineering design to construction and operations. This end-to-end approach enables the company to provide integrated solutions to its clients, resulting in improved efficiency and cost-effectiveness.
Additionally, Wood plc has a history of strategic acquisitions and partnerships, enhancing its capabilities and expanding its service offerings. These initiatives demonstrate the company’s commitment to growth and innovation, positioning it to adapt to evolving market dynamics and capitalize on emerging trends such as renewable energy and sustainability.
Lastly, the company’s focus on safety, sustainability, and environmental responsibility aligns with the growing global emphasis on sustainable practices. Wood plc’s expertise in environmental consulting and its commitment to reducing its own carbon footprint can be appealing to investors who prioritize companies with strong environmental, social, and governance (ESG) performance.
It’s important to conduct thorough research and analysis, taking into account market conditions, financial performance, and individual investment goals before making any investment decisions.