19 December
John Wood Group PLC ("Wood Group")
Pre Close Period Trading Update for the year ending 31 December 2007
Wood Group, the international energy services company, issues the following pre
close trading update for the year ending 31 December 2007. The preliminary
announcement of the results for the year will be made on 4 March 2008.
Our global markets remain strong and we continue to make good progress. The
Board anticipates that Group EBITA for the year will be ahead of market
expectations, up by more than 45% on last year at around $315m, with all three
divisions delivering increased revenues and margins.
Engineering & Production Facilities
Engineering & Production Facilities has grown strongly in the year. In
Engineering, we have seen good progress in Houston, London and Perth and are
continuing to develop newer areas such as Norway, India, the Middle East and
Asia Pacific. In November we completed the acquisition of IMV, to give us a
market leading position in engineering, procurement and construction management
for in situ oil sands developments in Canada. In Production Facilities, we have
successfully extended key major contracts and won a number of duty holder roles
in our North Sea market where we are seeing continuing customer focus on
efficient project delivery, integrity enhancements and subsea tie backs. We
have also made good progress in our international markets including Algeria,
Equatorial Guinea and Trinidad.
Well Support
Our Well Support businesses have continued to perform well. In Electric
Submersible Pumps we have seen high levels of activity in our long term
contracts and delivered good growth in Russia, where we have recently won our
first performance based contract. In Pressure Control, our international
development continues with ongoing success in Mexico, Saudi Arabia and North
Africa. In Logging Services, we delivered a good performance from Argentina and
are continuing to develop our position in new areas in the US, including the
Barnett Shale and the Rockies.
Gas Turbine Services
Gas Turbine Services continues to make good progress. We are performing
strongly in the oil & gas market, benefiting from our investment in extending
our aftermarket services for a wide range of industrial turbines. In the power
market we are seeing increasing gas turbine power demand around the world.
During the year we were awarded a number of contracts delivering fast track
power packages, and continue to see good potential in this area, particularly
in developing economies. We are also building up our long term contract
portfolio and continuing to position the business for further margin
improvement in 2008.
Allister Langlands, Group Chief Executive, said, "Our businesses are performing
well in strong oil & gas and power markets. We continue to expand our service
range and geographic reach alongside our ongoing investment in successfully
recruiting and developing high quality people. Looking to 2008, we anticipate
markets will remain healthy and we are well placed to deliver further good
growth."
EBITA represents operating profit before deduction of exceptional items and
amortization of other intangible assets and is provided as it is the key unit
of measurement used by the Group in the management of its businesses.
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