WOOD GROUP (JOHN) PLC: Interim Management Statement
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 expectations.
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 with expectations.
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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
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