John Wood Group PLC ("Wood Group")
Pre-close trading update
Wood Group, the international energy services business, issues the following
pre-close trading update for the year to 31 December 2010. Results for the year
will be released on 4 March 2011.
Overall performance for the year is anticipated to be slightly ahead of
expectations.
In Engineering, having secured a number of awards during the year, our order
book continues to strengthen. We are active on several upstream, subsea and
pipeline projects in Australia, Canada, US onshore and offshore, Colombia, West
Africa and the Middle East. 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, Australia
and Oman, where our joint venture with CCC has recently secured its first major
operations and maintenance contract with PDO.
In Well Support, our Electric Submersible Pumps business is performing well in
the US and 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. Overall, the strong market
backdrop in the US, further success achieved in developing the international
business, and good operational performance is expected to lead to 2010 Well
Support EBITA somewhat ahead of expectations.
The gas turbine aftermarket has remained soft with continuing deferrals of
maintenance and, as a result, the improvement in the second half is now likely
to be slightly less than previously expected. However, there will be benefit
from ongoing cost reduction initiatives and longer term aftermarket contracts
which provide improved backlog for future years. In Power Solutions, we have
secured two EPC contracts, including the recently announced $875m project with
Dorad in Israel which provide good backlog for Power Solutions through to 2013.
Overall, the performance for 2010 is anticipated to be slightly ahead of
expectations. Looking further ahead, we believe the fundamentals for oil & gas
services and gas fired power generation remain strong and that 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
END
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