5 October 2012
Interim Management Statement
John Wood Group PLC ("Wood Group") issues the following Interim Management
Statement. A full year trading update will be released on 13 December.
Conditions in energy markets remain favourable. The Group continues to deliver
good growth and is confident of achieving full year performance in line with
Our Engineering division is performing well, driven by high activity in
upstream and subsea & pipelines, and our order book and future prospects remain
strong. In Upstream, we are working on a number of major offshore developments
in the Gulf of Mexico and are active in international markets on projects
including Ichthys in Australia and Mafumeira Sul in Angola. In subsea and
pipelines, we are particularly active in the North Sea and the North West shelf
of Australia. In downstream, activity levels have been impacted by more subdued
US refining expenditure although, as anticipated, we expect some improvement in
the second half.
In Wood Group PSN, strong performance in the North Sea and North America is
continuing. In North America we are further strengthening our presence in the
shale regions through the recently announced agreement to acquire Mitchell's, a
provider of maintenance, installation and fabrication services in the oil-rich
Bakken region of North Dakota. In Oman, we continue to anticipate a full year
loss of around $15m - $20m. Elsewhere, we remain active in Africa, the Caspian
and Australia, where we have recently been awarded a significant maintenance
contract with Melbourne Water.
In Wood Group GTS, we expect good growth in EBITA for the year in Maintenance
and Power Solutions. Power Solutions has recently been awarded contracts with
NRG Energy and Pasadena Water & Power in the US which we anticipate will
contribute in 2013. We continue to see the potential for further awards.
We anticipate strong operating cash flow in the second half, and our strong
balance sheet provides a robust platform for growth.
The Group continues to be confident of achieving full year performance in line
- ends -
Notes to editors:
Wood Group is an international energy services company with around $6.0bn
revenues, employing over 42,000 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.
Nick Gilman / Andrew Rose / Carolyn Smith 01224 851 000
Patrick Handley/ Nina Coad 020 7404 5959
-0- Oct/05/2012 06:00 GMT
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