Wood Group Confident of Strong 2013 Performance, UK

John Wood Group said it continues to deliver good growth and is confident of achieving 2013 performance in line with expectations. The company’s outlook for 2014 remains unchanged from that outlined in the recent interim results announcement.

Wood Group Engineering is performing well and is expected to deliver EBITA growth of c.10 – 15% in 2013. In Upstream, the company’s Mafumeira Sul and Ichthys projects are making a good contribution and remain on schedule to be substantially completed around the year end, and the company continues to be active on a range of other projects. As expected, John wood Group’s business in Western Canada has remained subdued. In Subsea & Pipelines, the company is seeing good activity across its principal hubs and is benefitting from US shale related onshore pipeline work. Downstream, process & industrial is on track to deliver an improved performance over 2012.

In Wood Group PSN, growth is being led by its  US onshore shale related business, where the company now has over 1,900 people. Activity levels in the North Sea remain robust, following a significant number of contract renewals during the period. Internationally, the company has begun to mobilise its brownfield engineering and procurement contract with ExxonMobil in Papua New Guinea. In Oman, John Wood Group continues to expect an improvement in underlying financial performance for the full year.

In Wood Group GTS,  the company continues to expect that 2013 EBITA will be slightly ahead of 2012. Maintenance performance is benefitting from cost reduction initiatives, particularly in the company’s power plant services business. In Power Solutions, the NRG and Pasadena projects are now complete and the Dorad contract is on track to complete around the year end.

John Wood Group anticipates improved operating cash flow in the second half, and the company’s strong balance sheet provides a good platform for growth.

Overall, the group is confident of achieving full year performance in line with expectations.

[mappress]

LNG World News Staff, October 4, 2013; Image: Wood Group