Trading update for the six months to June 2011
30 June 2011
John Wood Group PLC ("Wood Group")
Trading update for the six months to June 2011
John Wood Group PLC ("Wood Group") issues the following pre-close trading
update for the six months to 30 June 2011.
Market conditions and Group performance are generally consistent with those
outlined in the Interim Management Statement issued on 11 May, 2011. Overall,
the Group has delivered good growth in the year to date and continues to
anticipate full year performance in line with expectations.
In Engineering, year to date performance and a strong order book continue to
support our expectation of good EBITA growth in 2011. Upstream volumes have
increased, albeit project deferrals continue in some areas. Subsea and pipeline
continues to perform strongly and the downstream, process and industrial
markets remain soft.
Wood Group PSN has seen reasonable activity levels in the North Sea where we
recently extended our TAQA Bratani contract for a further five years. In the US
we are seeing strong demand for our onshore services, driven by activity in the
shale regions, and steady performance offshore in the Gulf of Mexico.
Performance in certain Australian contracts continues to be impacted by delayed
start up, as does our contract in Oman. In Africa, we continue to be active
including on contracts in Angola, Chad, Equatorial Guinea and Nigeria.
In Gas Turbine Services, we see an improving outlook for our services in the
power market. Oil and gas maintenance performance is being impacted by test
cell downtime and overhaul delays. In Power Solutions, the Dorad and GWF
contracts are progressing well and will contribute to profit in the second
half. We continue to anticipate a strong recovery in Gas Turbine Services EBITA
for the year, which will have a significant second half weighting.
As announced on 11 May 2011, we have suspended engineering work for a Libyan
offshore project where amounts due under the contract are now around $25m.
Following the return of cash of £411.9m under the Tender Offer, we announced
details of the B/C share scheme and 7 for 9 share capital consolidation on 13
June. The issue of new ordinary shares and B/C shares on 4 July will complete
arrangements to return cash to shareholders of £1.08bn.
Overall, the Group continues to anticipate full year performance in line with
expectations. The long term fundamentals for oil & gas and gas fired power
generation remain strong and we believe the Group is well positioned to deliver
good longer term growth.
Results for the six months to June 30 will be announced on 23 August 2011.
- ends -
Notes to editors:
Wood Group is an international energy services company with $5.5bn revenues,
employing around 34,000 people and operating in 50 countries. The Group has
three businesses - Engineering, Wood Group PSN 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.
www.woodgroup.com
Enquiries:
Wood Group
Andrew Rose / Carolyn Smith 01224 851 000
Brunswick
Patrick Handley 020 7404 5959
Nina Coad
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