24th Aug 2021 08:20
(Alliance News) - John Wood Group PLC on Tuesday reported a decline in first-half revenue, as the negative effects from the coronavirus pandemic continued to be felt.
Revenue for the six months ended June 30 was USD3.15 billion, down 23% from USD4.09 billion in the period partially before the pandemic's outbreak a year before. The decline was attributed to the damage caused by Covid-19 and a USD74 million reduction in revenue from sold businesses.
The Aberdeen-based energy services provider posted a pretax profit of USD18.4 million, sharply up from USD900,000 a year prior. The improvement was driven by a fall in interest payments on bank borrowings because of lower rates. By contrast, interim operating profit stayed relatively flat at USD68.2 million, compared to USD65.6 million a year earlier.
The order book grew 9.1% to USD7.7 billion from last year's USD7.0 billion.
Chief Executive Robin Watson struck an upbeat tone saying: "The first half of 2021 reflects improving momentum in activity in the second quarter and a strong margin improvement, with increased margins in all business units and a greater weighting of high margin consulting activity.
"Trading momentum and good growth in our order book, which is up around 18% year-to-date, underpin our confidence in delivering a stronger second half which will reflect a return to growth compared to first-half 2021 and second-half 2020, and further growth in our full year adjusted earnings before interest, tax, depreciation and amortisation margin."
Looking ahead, the company said improving activity levels and strong order book growth underpin its confidence in growth in the second half.
John Wood reasserted full-year guidance, pointing to "relatively robust renewables activity and improving demand in conventional energy markets".
Annual revenue is now expected in the range of USD6.6 billion to USD6.8 billion, while a return to growth - relative to both first-half 2021 and second-half 2020 - is anticipated.
The company declared no interim dividend, in line with the year before, but said it was committed to reviewing the future policy as certainty over the rate of recovery in markets increases.
Shares in John Wood were down 1.2% at 230.79 pence in London on Tuesday morning.
By Will Paige; [email protected]
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