John Wood Group PLC ("Wood Group"), the international energy services company,
issues the following IMS which the Chairman, Sir Ian Wood, will deliver at the
AGM, today, 12 May. A trading update for the six months to 30 June 2010 will be
provided on 1 July 2010.
Market conditions remain broadly consistent with those outlined in our 2009
results announcement on 2 March 2010. We are continuing to deliver a robust
overall performance from our production support related activities, and the
Group's performance in the year to date is in line with expectations.
In our development related Engineering business, volumes continue to be
impacted by project delays and we expect 2010 revenues to be down on 2009. The
largest reduction is in the downstream, process and industrial area, where the
market is expected to remain soft throughout 2010. In upstream, we have a good
prospect list and anticipate seeing an increase in volumes later in 2010 and
into 2011. Subsea and pipeline activities continue to enjoy good levels of
business. We have now completed the acquisition of a controlling interest in
Al-Hejailan Consulting, a Saudi Engineering company, and expect further
progress over the coming months on our growth initiatives in Africa, Asia
Pacific and the Middle East.
In Production Facilities, we are seeing good activity across our longer term
contracts in the North Sea and have agreed contract extensions with Total and
Hess. We are seeing an increasing level of international opportunities and have
recently secured a contract extension with Brunei Shell Petroleum. Our
Australian business is developing well and new joint venture, focused on the
coal seam methane market, has recently won its first long term operations
support contract.
In Well Support, our Electric Submersible Pump and Pressure Control businesses
continue to develop their international activities, including strengthening
their position in the Middle East, Africa and Latin America. US gas related
activities in Pressure Control and Logging Services are benefitting from cost
reductions implemented in 2009 and from increased volumes as a result of the
higher US rig count.
In Gas Turbine Services, we expect to see reasonable overall demand for our oil
& gas and power aftermarket services for the year, but the maintenance
deferrals experienced in 2009 are continuing into the first half. In Power
Solutions, we are tracking a number of opportunities and expect we will see
project awards later in the year. Overall in 2010, we expect the GTS EBITA
contribution to be weighted to the second half.
Our financial position remains strong and we anticipate good operating cash
flow for the year. We continue to pursue a number of bolt-on acquisition
opportunities to expand our geographic footprint in key growth markets.
Overall, we believe that our 2010 performance will be in line with
expectations. Looking further ahead, we believe the fundamentals for oil & gas
services and gas fired power generation remain strong and we are well
positioned to deliver good longer term growth.
- ends -
Notes to editors:
Wood Group is an international energy services company with $5bn revenues,
employing more than 28,000 people and operating in 50 countries. The Group has
three businesses - Engineering & Production Facilities, Well Support, and Gas
Turbine Services - 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
For further information contact:
Wood Group
Nick Gilman / Carolyn Smith 01224 851 000
Brunswick
Patrick Handley 020 7404 5959
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.