WOOD GROUP (JOHN) PLC: Interim Management Statement
4 October 2013
Interim Management Statement
John Wood Group PLC ("Wood Group" or "the Group") issues the following Interim Management Statement.
A full year trading update will be released on 12 December 2013.
The Group continues to deliver good growth and is confident of achieving 2013 performance in line with expectations. Our outlook for 2014 remains unchanged from that outlined in our recent interim results announcement.
Wood Group Engineering is performing well and is expected to deliver EBITA growth of c.10 - 15% in 2013. In Upstream, our Mafumeira Sul and Ichthys projects are making a good contribution and remain on schedule to be substantially completed around the year end, and we continue to be active on a range of other projects. As expected, our business in Western Canada has remained subdued. In Subsea & Pipelines, we are seeing good activity across our principal hubs and are benefitting from US shale related onshore pipeline work. Downstream, process & industrial is on track to deliver an improved performance over 2012.
In Wood Group PSN, growth is being led by our US onshore shale related business, where we now have over 1,900 people. Activity levels in the North Sea remain robust, following a significant number of contract renewals during the period. Internationally, we have begun to mobilise our brownfield engineering and procurement contract with ExxonMobil in Papua New Guinea. In Oman, we continue to expect an improvement in underlying financial performance for the full year.
In Wood Group GTS, we continue to expect that 2013 EBITA will be slightly ahead of 2012. Maintenance performance is benefitting from cost reduction initiatives, particularly in our power plant services business. In Power Solutions, the NRG and Pasadena projects are now complete and the Dorad contract is on track to complete around the year end.
We anticipate improved operating cash flow in the second half, and our strong balance sheet provides a good platform for growth.
Overall, the Group is 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 employing around 43,000 people worldwide and operating in over 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. www.woodgroup.com
Wood Group Nick Gilman - Group Head of Investor Relations and Corporate Communications Andrew Rose - Investor Relations Manager Carolyn Smith - Director of Corporate Communications, Eastern Hemisphere 01224 851000
Brunswick Patrick Handley Rosheeka Field 020 7404 5959
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