AGM Statement

13 May 2015 Annual General Meeting Statement John Wood Group PLC ("Wood Group" or "the Group"), issues the following AnnualGeneral Meeting ("AGM") Statement. Trading performance Overall performance for the year to date, whilst down on 2014, reflects therelative resilience of our business model. We are flexible and asset light,with a range of predominantly reimbursable activities across customers' opexand capex spending. We remain focused on SG&A cost reduction and utilisation,and are helping customers to reduce their project costs, increase operatingefficiency and safely improve performance. We now have improved visibility on customers' spending plans for the year,although market conditions remain challenging. We are confident that we candeliver SG&A cost reductions of over $30m in 2015 and anticipate that fullyear EBITA will be broadly in line with analyst consensus.1 Looking furtherahead, we remain confident of delivering good growth as market conditionsimprove. Engineering In Upstream, activity remains subdued, continuing the trend we initiallycommunicated in the second half of 2013. Although we still see a number ofprojects being deferred we remain encouraged by the high volume of early stage work as customers look to re-engineer projects with a view to improvingproject economics. We remain active on a number of detailed engineeringprojects,including Det Norske's Ivar Aasen in the Norwegian North Sea and HessStampede in the Gulf of Mexico. In March we were awarded the FEED and procurementscope for Statoil's Kollsnes gas plant in Norway leveraging our strength inautomation and control engineering and our 2014 Norwegian acquisition, AgilityProjects. Also in March, we were awarded an Offshore Maintain Potentialcontract from Saudi Aramco for six years covering engineering, procurement andconstruction management. In Subsea and Pipelines, activity levels have reduced somewhat, with a smallernumber of large subsea capex projects coming to market and as a result we areseeing an increase in the proportion of operations support activity in certainareas. Our UK business is supporting activities in Africa, Middle East and theCaspian, including activity with BP on Shah Deniz, with Zadco in Abu Dhabi andwith Tullow in Ghana. We have also recently secured a five year maintenancecontract for subsea well control spanning the UK, Singapore and Brazil as partof a joint industry project. In Australia, we were awarded a FEED contractwith Woodside in February and we remain engaged on the Gorgon project,expected to complete later in the year. Our onshore pipelines business isbenefitting from the impact of US customers seeking to improve transportationto downstream facilities. Our Downstream, process and industrial activities are performing well, in partdue to the impact of lower commodity prices. Following the successfulcompletion of early stage engineering on a refinery modification project forFlint Hills Resources in the Eagle Ford region, we have recently been awardedthe detailed engineering, procurement and construction support scope. PSN In the Americas, the US onshore market has been impacted by the decline in therig count leading to reduced demand for our well-pad related activitiesincluding fabrication and site preparation and, to a lesser extent, midstreamconstruction services. Our ongoing opex focused maintenance activity whichaccounts for over half our onshore work has been less affected. In bothonshore and offshore, we are making good progress on cost reductions to helpreduce the impact of lower pricing and activity. In Trinidad our joint venturewas awarded a new five year, $250 million contract to provide engineering,procurement and construction services to BP's offshore facilities. In the North Sea, five year contract awards this year with Total and Enquestcovering engineering, construction, procurement, integrity and commissioninghelp maintain our leading position and, together with ongoing long termagreements, provide visibility on maintenance and brownfield engineering work.Following our decision to reduce contractor rates in 2014, we have continuedto work alongside customers on efficiency improvement initiatives. We areseeing the impact of reduced project work and in certain cases non-essentialmaintenance work, but see longer term opportunities focused on improvingoperating efficiency and late life asset management. In our international business, longer term contracts secured in 2014 inAustralia and Asia Pacific are progressing and we see a number of near termopportunities for growth in the Middle East, particularly in Iraq. In Turbine JVs, the primary focus continues on actions to improve performancein EthosEnergy where we have made some progress. Cash flow and financing We expect to deliver strong cash flow from operations in 2015, and, asreported, we extended our $950m bilateral bank facilities until 2020. Ourstrong balance sheet provides security and flexibility, and we remain at thelower end of our preferred Net Debt: EBITDA range of 0.5 times to 1.5 times.Our intention remains to increase the dividend per share by a double digitpercentage from 2015 onwards. Board composition As previously announced, Alan Semple will retire as CFO and from the Board atthe AGM and Michel Contie will also step down at that time. Following the AGM,David Kemp will take over as CFO and join the Board as an executive director. David was previously Wood Group PSN CFO and has been in the role of Deputy CFOsince January 1, 2015. Outlook We now have improved visibility on customers' spending plans for the year,although market conditions remain challenging. We are confident that we candeliver SG&A cost reductions of over $30m in 2015 and anticipate that fullyear EBITA will be broadly in line with analyst consensus.1 Looking furtherahead, we remain confident of delivering good growth as market conditionsimprove. A trading update for the first half of the year will be provided on 25 June2015. - ends - Notes to Editors: Wood Group is an international energy services company with over $7bn sales.The Group is built on our Core Values and has two reporting segments - WoodGroup Engineering and Wood Group PSN - providing a range of engineering,production support and turbine services to the oil & gas, and power sectors.www.woodgroup.com Note 1 - Company compiled publicly available consensus EBITA on aproportionally consolidated basis is $473m and AEPS is 86.4c, last updated on1st May 2015.(http://www.woodgroup.com/investors/analyst-consensus/pages/default.aspx) Enquiries: Wood GroupAndrew Rose 01224 851 000Laura McCrackenCarolyn Smith BrunswickPatrick Handley 020 7404 5959Charles Pemberton