Wood Group Reports Strong 1H Performance

Wood Group, an international energy services company, has announced its half year results for the six months ended 30 June 2013.

The Company reports good growth in EBITA in the first half and is confident of achieving full year performance in line with expectations. Revenue from continuing operations was $3,447.1m (2012: $3,346.3m) up 3.0%. EBITA from continuing operationswas   $243.2m (2012: $205.1m) up 18.6%. Profit from continuing operations before tax and exceptional items was $186.6m (2012: $160.0m) up 16.6%. Adjusted diluted EPS1 of 44.5 cents (2012: 37.4 cents) up 19.0%. Interim dividend of 7.1 cents (2012: 5.7 cents) up 24.6%.

Wood Group Engineering reports a strong first half performance; anticipate EBITA growth of c. 10-15% for the full year. Mafumeira Sul and Ichthys projects are progressing well and the completion is expected by the year end. The Group also reports strong activity across principal subsea hubs.

Wood Group PSN announced a strong growth in the Americas with significant contribution from US shale activities. Multiple North Sea contract renewals reinforce the Company’s market leading position. International awards include substantial new scope in Papua New Guinea.

Wood Group GTS recorded improved margins in Maintenance offsetting impact of expected fall in Power Solutions activity. Maintenance – benefiting from oil & gas activity, and cost reduction initiatives. Power Solutions – confident of agreeing change orders on Dorad contract; good performance on NRG and Pasadena.

Bob Keiller, CEO commented:

“We have achieved good growth in the first half and remain confident of achieving full year performance in line with expectations. In March, I talked about our focus on increasing collaboration across Wood Group; this is progressing well and we have already seen new business opportunities driven by people working more closely together. Activity levels generally remain healthy and we believe the Group is well positioned for future growth.”

The Group has three businesses – Wood Group 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.

[mappress]
August 20, 2013