John Wood Group PLC ("Wood Group")
Interim Management Statement
Wood Group, the international energy services company, issues the following
Interim Management Statement. A full year trading update will be provided on 16
December 2010.
Overall performance for the Group for the year to date continues to be in line
with expectations.
In Engineering, higher bidding volumes and recent contract awards are expected
to contribute to an improvement in performance in the second half and into
2011. In addition to securing the detail design for Chevron's Jack & St. Malo
deepwater facility in the Gulf of Mexico, we are active on several FEED studies
for projects in the Gulf of Mexico and West Africa. In Production Facilities,
we remain active in the North Sea for a wide range of clients and have
continued to focus on developing our presence in a number of international
markets including Angola and Australia, where our joint venture with Wagners
has recently secured its second contract in the coal seam methane market.
In Well Support, our Electric Submersible Pumps business continues to make good
progress in developing its international presence. The US rig count continues
to provide good momentum for our Pressure Control and Logging Services
activities. In addition, Pressure Control maintains a good international order
backlog.
The Gas Turbine Services aftermarket remains relatively soft. However we expect
to deliver an improved second half performance based on higher underlying
activity and some benefit from ongoing cost reduction initiatives. In Power
Solutions, we have recently been awarded a $150m combined cycle EPC contract in
California, which provides backlog for 2011.
Our financial position remains strong and we anticipate good operating cash
flow for the second half of the year.
Overall, we continue to believe that the Group's performance for 2010 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 medium term growth.
- Ends -
Notes to editors:
Wood Group is an international energy services company with approximately
$5 bn sales, employing approximately 29,000 people worldwide 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.
Enquiries:
Wood Group
Nick Gilman / Carolyn Smith 01224 851000
Brunswick
Patrick Handley/ Nina Coad 020 7404 5959
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