27 June 2013
Trading update for the six months to June 2013
John Wood Group PLC ("Wood Group"), issues the following pre-close trading update for the six months to 30 June 2013. Results for the first half will be released on 20 August 2013.
The Group is on course to deliver good growth in the first half and remains confident of achieving full year performance in line with expectations.
Wood Group Engineering continues to perform well and is on track to achieve EBITA growth of around 15%. In Upstream, work on Ichthys and Mafumeira Sul is progressing well and we were awarded FEED and detailed engineering scopes in
areas including Canada, the Gulf of Mexico and Norway. In Subsea and Pipelines, we have recently won onshore pipeline engineering projects with Dow Chemical and Williams in the US, and are seeing strong activity across our principal
subsea hubs in the UK, US and Asia Pacific. We also recently acquired Intetech Limited to enhance our integrity management offering. In downstream, we have seen higher volumes contributing to improved performance.
In Wood Group PSN, our US onshore business is showing good growth, led by performance in the shale regions. Offshore US, we secured operations & maintenance work for Hess in the Gulf of Mexico. In the North Sea activity remains strong and we have recently renewed duty holder contracts with Ithaca Energy and Teekay, which help reinforce our position as the leading operations management provider in the region. Internationally, we won work with Shell in Iraq, and in Oman, we remain confident of a significant improvement in financial performance for the year.
In Wood Group GTS Maintenance, performance in our engine overhaul activities improved in the second quarter and we are seeing the impact of cost reduction initiatives. In Power Solutions, we remain confident of finalising change orders on Dorad which should benefit the full year position. The NRG and Pasadena contracts have progressed well, and we have reached final agreement on the outstanding change orders on the completed GWF contract. We continue to pursue a number of smaller opportunities, which should contribute to 2014.
Overall, we remain confident of achieving full year performance in line with expectations. Looking further ahead, our strong balance sheet, market fundamentals, leading positions, and balance of opex and capex related activities position the Group well for longer term growth.
A telephone conference call for analysts will be held at 8am today; participant dial-in details below:
UK: 01296 480 100
International: +44 1296 480 100
Passcode: 168 600
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Notes to editors:
Wood Group is an international energy services company with around $7.0bn revenues, employing around 43,000 people and operating in 50 countries. The Group has three businesses - Wood Group Engineering, Wood Group PSN and Wood Group GTS - providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil & gas, and power generation industries worldwide. www.woodgroup.com
Nick Gilman / Andrew Rose / Carolyn Smith 01224 851 000
Patrick Handley 020 7404 5959