Trading update for the six months to June 2012
29 June 2012
Trading update for the six months to June 2012
John Wood Group PLC ("Wood Group") issues the following pre-close trading
update for the six months to 30 June 2012. Results for the first half will be
released on 21 August 2012.
The Group has delivered good growth in the year to date and remains confident
of achieving full year performance in line with expectations.
Our Engineering division continues to perform well, delivering revenue growth
and margin improvement which is expected to result in full year EBITA up around
30% on 2011. In upstream, we are seeing high activity levels supported by a
good order book and future prospects. We are working around the world for
clients on a broad range of projects, including the Inpex Ichthys project in
Australia for Samsung and Chevron's Mafumeira Sul project in Angola for Daewoo
Shipping and Marine Engineering. In subsea and pipelines, the strong overall
performance continues, driven in particular by the UK and Australia. Earlier
this year we secured an Enterprise Frame Agreement with Shell, under which we
are executing a range of work including the Linnorm FEED study in Norway. In
downstream, process and industrial, performance continues to be impacted by
lower expenditure in the refining market in North America.
In Wood Group PSN we continue to expect improved performance over 2011. In the
UK, we are seeing good activity levels on our long term operations &
maintenance contracts, including those with BP, Shell, Talisman and TAQA. The
Americas remain strong, particularly in the provision of production support
services in the US shale regions where we see opportunities for further growth.
In International markets, losses are continuing on our significant long term
contract in Oman. Elsewhere, we remain active in Australia, Africa and the
Caspian.
In Wood Group GTS, we expect good growth in EBITA for the year, weighted to the
second half. In Maintenance, power markets continue to be relatively
challenging although we are seeing some early indications of improving
conditions in the US. In Power Solutions, there has been some delay in
anticipated completion on our GWF contract although we continue to schedule
completion in the second half of 2012. The Dorad contract remains on track and
scheduled for completion in 2013. We continue to pursue additional Power
Solutions prospects in Africa, the Caspian and the Middle East.
Our balance sheet remains strong and provides a robust platform for growth.
The Group has delivered good growth in the year to date and remains confident
of achieving full year performance in line with expectations.
Conference Call
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: 816797
- ends -
Notes to editors:
Wood Group is an international energy services company with around $6.0bn
revenues, employing over 41,000 people and operating in 50 countries. The Group
has three businesses - 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
Enquiries:
Wood Group
Nick Gilman / Andrew Rose 01224 851 000
Brunswick
Patrick Handley/ Nina Coad 020 7404 5959
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