12th Dec 2018 08:55
LONDON (Alliance News) - John Wood Group PLC said Wednesday it returned to growth in 2018, with its financial performance expected to be in line with views, as it announced a major new US contract.
John Wood shares were trading down 8.8% at 587.20 pence each.
"Wood returned to growth in 2018, and performance is in line with guidance and expectations. In 2018 good momentum in trading has driven revenue growth of over 10%, we secured revenue synergies of over USD500 million and increased our cost synergy targets to over USD210 million," Chief Executive Officer Robin Watson said.
The engineering and technical services company expects proforma revenue up by more than 10% on 2017, to between USD10.9 billion and USD11.1 billion. A year ago, proforma revenue came in at USD9.88 billion.
Full-year earnings before interest, taxes and amortisation is expected to be in the range of USD620 million and USD630 million. In 2017 Ebita was USD598 million.
Looking ahead at 2019, John Wood said that the outlook "remains generally favourable across our industrial end markets". It expects further earnings growth and synergy delivery of USD60 million.
Furthermore, FTSE 250-listed company said Wednesday it has been awarded a "major" contract to deliver engineering, procurement and construction services on a plastics manufacturing facility on the US Gulf Coast.
The contract is subject to the plant being constructed after receiving environmental permits. Work completion is expected for late 2021.
"The five-year contract will see Wood deliver EPC services for key infrastructure to support the plastics facility, including a world-class ethane steam cracker unit, feeding a monoethylene glycol unit and two polyethylene units," the firm explained.
The contract will see 1,100 employees deployed during peak construction as it is one of the "largest" contracts in the firm Americas business.
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