9 October 2014
Interim Management Statement
John Wood Group PLC ("Wood Group" or "the Group") issues the following Interim
Management 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 with
that referred to in our interim statement of 19 August 2014; we anticipate
performance in line with expectations and up on 2013, led by growth in PSN
Production Services.
In Wood Group Engineering, a lower contribution from Upstream continues to be
partially offset by good performance in Subsea & Pipelines and Downstream.
There is no change in the slower pace of detailed Upstream offshore engineering
awards, although we have seen higher levels of early stage engineering work in
2014 which is an encouraging indicator of future activity. The acquisition of
Agility Projects AS was completed on 1 September 2014 adding to our
capabilities in the Norwegian greenfield and brownfield market.
Wood Group PSN Production Services continues to deliver strong growth. This is
being driven by performance in the Americas led by typically higher margin US
shale work and includes the benefit of the Elkhorn business acquired in 2013.
The North Sea business remains robust and is benefitting from service expansion
achieved with the acquisition of Pyeroy, also in 2013. Reinforcement of the
international business continues with the recent award of an EPCM contract
across Woodside's onshore and offshore assets in Australia. This adds to recent
multi-year contract awards in Papua New Guinea and Malaysia with ExxonMobil.
We continue to expect a significant improvement in Turbine Activities in the
second half including substantial recovery of the financial position on Dorad,
although EBITA will be lower in 2014 than in 2013. The expected reduction is
primarily related to performance in the Wood Group businesses prior to the
creation of EthosEnergy in May, and the impact of project delays in EthosEnergy
during the remainder of 2014.
We are confident of an improvement in cash generated from operations in the
second half. The balance sheet remains strong and provides a good platform for
organic and acquisition led growth.
Overall, we continue to anticipate performance in line with expectations and up
on 2013, led by growth in PSN Production Services.
Wood Group will be holding a Capital Markets presentation at 10.30am today at
the Lincoln Centre, Lincoln's Inn Fields, London, WC2A 3ED covering the
production services activities of Wood Group PSN. A webcast of the presentation
will be available on our website. No further comment on current trading will be
given.
Enquiries:
Wood Group
Andrew Rose - Group Head of Investor Relations
Carolyn Smith - External Affairs Manager 01224 851 000
Brunswick
Patrick Handley 020 7404 5959
Nina Coad
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