Pre-close trading update

John Wood Group PLC ("Wood Group") Pre-close trading update Wood Group, the international energy services business, issues the following pre-close trading update for the year to 31 December 2010. Results for the year will be released on 4 March 2011. Overall performance for the year is anticipated to be slightly ahead of expectations. In Engineering, having secured a number of awards during the year, our order book continues to strengthen. We are active on several upstream, subsea and pipeline projects in Australia, Canada, US onshore and offshore, Colombia, West Africa and the Middle East. In Production Facilities, we remain active in the North Sea for a wide range of clients and have continued to focus on developing our presence in a number of international markets including Angola, Australia and Oman, where our joint venture with CCC has recently secured its first major operations and maintenance contract with PDO. In Well Support, our Electric Submersible Pumps business is performing well in the US and continues to make good progress in developing its international presence. The US rig count continues to provide good momentum for our Pressure Control and Logging Services activities. In addition, Pressure Control maintains a good international order backlog. Overall, the strong market backdrop in the US, further success achieved in developing the international business, and good operational performance is expected to lead to 2010 Well Support EBITA somewhat ahead of expectations. The gas turbine aftermarket has remained soft with continuing deferrals of maintenance and, as a result, the improvement in the second half is now likely to be slightly less than previously expected. However, there will be benefit from ongoing cost reduction initiatives and longer term aftermarket contracts which provide improved backlog for future years. In Power Solutions, we have secured two EPC contracts, including the recently announced $875m project with Dorad in Israel which provide good backlog for Power Solutions through to 2013. Overall, the performance for 2010 is anticipated to be slightly ahead of expectations. Looking further ahead, we believe the fundamentals for oil & gas services and gas fired power generation remain strong and that we are well positioned to deliver good medium term growth. Ends Notes to editors: Wood Group is an international energy services company with approximately $5 bn sales, employing approximately 29,000 people worldwide and operating in 50 countries. The Group has three businesses - Engineering & Production Facilities, Well Support, and Gas Turbine Services - 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. Enquiries: Wood Group Nick Gilman / Carolyn Smith 01224 851000 Brunswick Patrick Handley/ Nina Coad 020 7404 5959 END
UK 100

Latest directors dealings