1 July 2010
John Wood Group PLC ("Wood Group")
Trading update for the six months to 30 June 2010
Wood Group, the international energy services company, issues the following
pre-close trading update for the six months to 30 June 2010.
Overall performance for the Group for the year to date is in line with
expectations.
Engineering has performed as expected and bidding volumes have improved, giving
increased confidence in a return to growth in 2011. In Production Facilities,
activity is robust in the North Sea and we continue to see an increasing level
of international opportunities. In Well Support, stronger activity in the US,
reflecting the higher than anticipated rig count, and the good international
performance should result in EBITA for the year ahead of expectations. In Gas
Turbine Services, we believe continuing maintenance deferrals by customers and
lower activity in Power Solutions will contribute to a significant weighting to
the second half and EBITA for the year below expectations.
The consequences of the tragic Macondo incident in the Gulf of Mexico are not
anticipated to materially impact financial performance in the current year.
Approximately 4% of the Group's revenue, primarily in subsea and topsides
engineering, is related to new deepwater developments in the Gulf of Mexico.
Overall, we believe that the Group's performance for 2010 will be in line with
expectations. We believe that longer term fundamentals for our services and
products remain strong and we are continuing to extend our services and broaden
our international presence.
Results for the six months to 30 June will be announced on 24 August 2010.
- ends -
Notes to editors:
Wood Group is an international energy services company with $5bn revenues,
employing more than 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.
www.woodgroup.com
For further information contact:
Wood Group
Nick Gilman / Carolyn Diack 01224 851 000
Brunswick
Patrick Handley 020 7404 5959
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