Energy services firm Wood Group (WG.) is under pressure to deliver after ultimately unrealised takeover interest from private equity firm Apollo Global Management earlier this year.

In May Apollo said it would not proceed with a takeover, despite Wood finally opening its books to the firm at the fifth time of asking in response to a bid of 240p per share. With no reasoning given for Apollo’s stance, it’s no surprise investor confidence was shaken.

Having collapsed, the stock has recovered some ground but still trades substantially below this bid price at 164.9p.

The company has been beset by restructuring and legacy issues since its 2017 merger with Amec Foster Wheeler, such that, despite some underlying progress, Berenberg does not anticipate positive free cash flow until 2024. Cash flow and margin performance will likely be in focus when the company reports its results for the six-month period ended 30 June on 22 August.

Management may also be expected to provide some colour on a recent multi-year framework agreement struck with Shell (SHEL) to continue providing services on the energy giant’s global projects. No financial terms have been disclosed on the three-year agreement which has options for two one-year extensions.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

August 24: Cropper (James)

HALF-YEAR RESULTS

August 22: Wood Group, Empresaria, Anexo

August 24: Macfarlane, CRH, Hunting, Tribal

TRADING ANNOUNCEMENTS

August 22: RUA Life Sciences

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