Wood Group Expects 2012 Performance to Be in Line with Expectations (UK)
John Wood Group PLC (“Wood Group”) issues the following pre-close trading update for the year to 31 December 2012. Full year results will be announced on 5 March 2013.
Overall, conditions in energy markets remain favourable. The Group expects to deliver good growth for the year in line with expectations.
The Engineering division is performing well and continues to anticipate that 2012 EBITA will be up over 30%. Headcount was 10,300 at the end of November. In upstream, work is progressing on the Ichthys and Mafumeira Sul projects in Australia and Angola respectively, and the company remains active on a number of offshore projects in the Gulf of Mexico including Hadrian and Lucius. In the Canadian oil sands market it anticipate some reduction in activity in 2013. In subsea and pipelines, Wood Group is particularly active in the North Sea and the North West Shelf of Australia, and continue to see good activity levels in onshore pipelines in North America. In downstream, the market outlook remains generally subdued, albeit the company has seen some improvement in performance in the second half.
In Wood Group PSN, growth for the year is underpinned by strong performance in the North Sea and in North America, particularly in the US shale regions where it completed the acquisition of Mitchell’s in North Dakota during October. In Oman, it has taken steps on a number of key matters to improve performance on the contract with PDO. Losses for the year are expected to be around $20m and, subject to further progress, and anticipate significantly reduced losses on the contract in 2013 and that 2014 will be profitable. Elsewhere, the company remain active in a number of other international locations including Africa, the Caspian and Australia.
In Wood Group GTS, performance in the Maintenance business has benefitted from the contribution from oil & gas related activities. In Power Solutions, they have recognised reduced margins on the contract with GWF which is now substantially complete and continue to make good progress on the Dorad contract which is scheduled to complete in the fourth quarter of 2013. Wood Group GTS has recently commenced work on contracts with NRG Energy and Pasadena Water & Power and are tracking further opportunities, albeit delays in awards continue.
“Overall, performance for 2012 is anticipated to be in line with expectations. We anticipate further good growth in 2013 and remain confident in the longer term prospects for the Group’s market leading services in oil & gas and gas fired power generation markets“, said the company in a press release.
Press Release, December 13, 2012