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Interim Management Statement

9th Oct 2014 07:00

WOOD GROUP (JOHN) PLC - Interim Management Statement

WOOD GROUP (JOHN) PLC - Interim Management Statement

PR Newswire

London, October 8

9 October 2014 Interim Management Statement John Wood Group PLC ("Wood Group" or "the Group") issues the following InterimManagement Statement. A full year trading update will be released on 11 December 2014. Year to date trading supports a full year outlook for the Group consistent withthat referred to in our interim statement of 19 August 2014; we anticipateperformance in line with expectations and up on 2013, led by growth in PSNProduction Services. In Wood Group Engineering, a lower contribution from Upstream continues to bepartially offset by good performance in Subsea & Pipelines and Downstream.There is no change in the slower pace of detailed Upstream offshore engineeringawards, although we have seen higher levels of early stage engineering work in2014 which is an encouraging indicator of future activity. The acquisition ofAgility Projects AS was completed on 1 September 2014 adding to ourcapabilities in the Norwegian greenfield and brownfield market. Wood Group PSN Production Services continues to deliver strong growth. This isbeing driven by performance in the Americas led by typically higher margin USshale work and includes the benefit of the Elkhorn business acquired in 2013.The North Sea business remains robust and is benefitting from service expansionachieved with the acquisition of Pyeroy, also in 2013. Reinforcement of theinternational business continues with the recent award of an EPCM contractacross Woodside's onshore and offshore assets in Australia. This adds to recentmulti-year contract awards in Papua New Guinea and Malaysia with ExxonMobil. We continue to expect a significant improvement in Turbine Activities in thesecond half including substantial recovery of the financial position on Dorad,although EBITA will be lower in 2014 than in 2013. The expected reduction isprimarily related to performance in the Wood Group businesses prior to thecreation of EthosEnergy in May, and the impact of project delays in EthosEnergyduring the remainder of 2014. We are confident of an improvement in cash generated from operations in thesecond half. The balance sheet remains strong and provides a good platform fororganic and acquisition led growth. Overall, we continue to anticipate performance in line with expectations and upon 2013, led by growth in PSN Production Services. Wood Group will be holding a Capital Markets presentation at 10.30am today atthe Lincoln Centre, Lincoln's Inn Fields, London, WC2A 3ED covering theproduction services activities of Wood Group PSN. A webcast of the presentationwill be available on our website. No further comment on current trading will begiven. Enquiries: Wood GroupAndrew Rose - Group Head of Investor RelationsCarolyn Smith - External Affairs Manager 01224 851 000 BrunswickPatrick Handley 020 7404 5959Nina Coad

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