WOOD GROUP (JOHN) PLC: Wood Group AGM and IMS
15 May 2013
Annual General Meeting Statement ("AGM") and Interim Management Statement
John Wood Group PLC ("Wood Group"), issues the following IMS which the Chairman, Allister Langlands, will deliver at today's AGM. A trading update for the first half will be provided on 26 June 2013.
Performance for the year to date is in line with expectations in Wood Group Engineering and Wood Group PSN. Wood Group GTS is currently behind plan and this is anticipated to be recovered over the course of the year. Overall, the Group remains confident of achieving full year performance in line with expectations.
Wood Group Engineering is performing well and is on track to deliver EBITA growth of around 15%. In Upstream, we have recently been awarded the detailed engineering scope on Anadarko Heidelberg in the Gulf of Mexico and remain active on a range of other projects including Ichthys and Mafumeira Sul. In Subsea and Pipelines, we are seeing strong activity across our principal hubs in the UK, US and Asia Pacific.
Wood Group PSN is performing well in the North Sea, where we have recently secured important extensions to major contracts with Total and CNR. In the Americas, our activities in the US shale regions are performing well, including good contributions from the acquisitions made in 2012. In International markets, we have recently secured extensions to contracts in Chad and Australia. In Oman, underlying losses are reducing and we remain confident of achieving a significant improvement in financial performance for the year.
In Wood Group GTS, our Maintenance business has been affected by delays to engine overhauls, including secured work in our aero derivative joint ventures, which are anticipated to be executed in the balance of the year. In Power Solutions, the forecast outcome on Dorad has been impacted by increased costs and this is reflected in the year to date position; we have provisional agreement on a number of change orders which should benefit the full year position. The NRG and Pasadena contracts are progressing according to plan and we continue to pursue a number of further opportunities. Overall, we anticipate that Wood Group GTS will deliver full year EBITA in line with expectations.
Overall, our balance sheet remains strong and we remain 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 $7.0bn revenues, employing around 43,000 people and operating in 50 countries. 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.
Nick Gilman / Andrew Rose / Carolyn Smith 01224 851 000
Patrick Handley 020 7404 5959
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