John Wood Group PLC ("Wood Group")
Pre-close period trading update for the six months ending 30th June 2006
Wood Group continued to make very good progress in the first half of the year
and is further developing its market-leading positions in a strong oil & gas
market.
The six month results for the period ending 30th June will be issued on the 5th
September 2006.
Engineering & Production Facilities
We are seeing good demand across our extended range of Engineering services and
have made progress in all areas. We continue to be very active in upstream
across a range of onshore and offshore projects around the world. We have
increased our involvement in midstream, where we have begun work on a project
utilising our proprietary LNG regasification system, and are busy downstream on
a number of debottlenecking and refinery upgrade projects. In Production
Facilities, we are maintaining our market leading position in a busy North Sea,
our international activities are progressing well, and we have entered new
markets with contract wins in Algeria, Kazakhstan and Norway.
Throughout Engineering & Production Facilities, we have a number of successful
initiatives building up the strength and depth of our people resource around
the world.
Well Support
Our Well Support businesses are performing strongly. In Pressure Control we
continue to add manufacturing capacity and further enhance the differentiation
of our products. We are achieving good growth outside the US, including notable
wins in the Arabian Gulf and North Africa. Our Electric Submersible Pump (ESP)
business, which continues to be strong in the US, is extending its
manufacturing capacity and increasing its international business, including a
strategically important contract win in Bohai Bay, China. In Logging Services,
our markets are strong, and we are broadening our activities, all of which are
performing well.
Gas Turbine Services
Gas Turbine Services continue to see a modest improvement in the North American
power market which should lead to increasing demand for our services. We are
continuing to develop and enhance our differentiation and build up our long
term contracts, including a significant power station operations & maintenance
contract in the Western United States with LS Power.
Sir Ian Wood, Chairman and Chief Executive, said "Our development related
activities are currently performing particularly strongly and we are continuing
our investment in the production phase to deliver later cycle growth. We
anticipate oil & gas markets will remain healthy and are confident of strong
growth for the year slightly ahead of market expectations. Looking ahead, our
positions in strong markets and a robust business development programme should
ensure we deliver continuing good growth".
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