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
- ends -
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
Nick Gilman - Group Head of Investor Relations and Corporate Communications
Andrew Rose - Investor Relations Manager
Carolyn Smith - Director of Corporate Communications, Eastern Hemisphere
020 7404 5959