17 December, 2009
John Wood Group PLC ("Wood Group")
Pre close trading update for the year ending 31 December 2009
Wood Group, the international energy services company, issues the following pre
close update for the year ending 31 December 2009. The announcement of the
results for the full year will be made on 2 March 2010.
We have continued to benefit from a robust performance from our production
support related businesses, and for the Group as a whole we believe that EBITA1
for the year will be in line with market expectations.
In our development related engineering activities, subsea and pipelines have
performed well and remain active on a number of major subsea projects. However,
as anticipated, project delays in upstream and downstream have reduced volumes
and margins and this trend looks set to continue into 2010, although, with our
good prospect list, we believe activity should begin to recover in the second
half of the year. Production Facilities has seen a strong performance in 2009,
including good activity in the North Sea supporting a broad range of customers.
Internationally we are developing our presence in Australia, West Africa and
Brazil, and following our acquisition of Baker Energy are now the leading
provider of operations support in the Gulf of Mexico, including deepwater
facilities.
In Well Support, our Electric Submersible Pumps business is making good
progress in developing its international activities in the Middle East, Africa
and Latin America. The US rig count is now recovering and this should provide
positive momentum for our Pressure Control activities into 2010. We have also
made good progress in developing Pressure Control's business internationally,
with recent success in Mexico and the Middle East. Overall, the performance of
the division has benefited from the early implementation of significant cost
reduction measures.
In Gas Turbine Services, we continue to see reasonable demand for our
aftermarket services in both oil & gas and power & industrial applications and
we have been successful in winning a range of longer term contracts. We
continue to see delays in the award of fast track power projects, but expect
awards to begin in 2010, which should provide good growth in 2011. We have
recently strengthened our offering by acquiring Shanahan, a leading provider of
power plant installation, commissioning and maintenance services in the Eastern
hemisphere.
Our financial position remains strong and we will deliver good operating cash
flow for the year. Overall, we believe our EBITA will be in line with market
expectations. We remain confident in the medium and longer term fundamentals of
our key markets and are continuing to develop our business to ensure that we
are well positioned to deliver good growth as energy market activity recovers.
Notes to editors:
Wood Group is an international energy services company with approximately $5bn
revenues, employing approximately 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.
1 EBITA represents operating profit before the deduction of exceptional items
and the amortisation of other intangible assets and is provided as it is the
key unit of measurement used by the company in the management of its
businesses.
Enquiries:
Wood Group
Nick Gilman / Carolyn Smith 01224 851 000
Brunswick
Patrick Handley 020 7404 5959
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