John Wood Group PLC ("Wood Group")
Pre-close period trading update for the year ending 31 December 2006
Wood Group, the international energy services company, issues the following
pre-close period trading update for the year ending 31 December 2006. The
preliminary announcement of the results for the year will be made on 6 March
2007.
In a strong global oil & gas and improving power market, we are strengthening
our market position and continuing our record growth. The Board anticipates
that Group EBITA 1 for the year will be ahead of market expectations, up some
45% on last year 2 at around $210m.
Engineering & Production Facilities
Engineering & Production Facilities has grown strongly in the period. We have
seen excellent performance from our engineering activities and are continuing
to develop our presence in a number of territories around the world. We are
working on a broad range of projects across upstream and downstream, including
the Mangala field in India, Valhall in Norway, Perdido in the Gulf of Mexico,
and key subsea projects in Australia and West Africa. Our production facilities
activities are experiencing strong demand in the North Sea and are now
beginning to see the benefits of ongoing investment in new overseas markets,
including a significant integrated maintenance contract to support BP's
upstream assets in Trinidad.
Well Support
All three Well Support businesses have continued to perform well. Our Electric
Submersible Pumps business is expanding its international presence, including
good growth in North Africa and Russia. In Pressure Control, our US operations
have continued to perform strongly and we have won several important
international contracts, including a major contract with Saudi Aramco. In
Logging Services, our key markets in the US and Argentina are strong and we are
broadening our activities.
Gas Turbine Services
Gas Turbine Services continues its recovery. Our oil & gas operations are
performing well and the ongoing improvement in the US power market is leading
to increasing demand for our services. We are continuing to enhance our
differentiation and build up business on long term contracts. In addition, we
are seeing good opportunities for our Power Solutions capability.
Sir Ian Wood, Chairman and Chief Executive, said "We will deliver a strong
financial performance in 2006. Throughout the year, our development related
activities in Engineering and Well Support have performed particularly well and
we have continued to invest in our production phase activities to deliver later
cycle growth. The major focus on expanding and developing our quality people
resource round the world has been very successful and we now employ more than
19,000 people. Looking ahead, we see oil & gas markets remaining strong and we
are entering 2007 with considerable momentum."
Notes
1 EBITA represents operating profit before the deduction of amortisation 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.
2 EBITA in 2005 was $144.1m, excluding $5.0m in relation to the Protech
business sold in December 2005.
Information:
Wood Group
Nick Gilman / Carolyn Smith 01224 851 000
Brunswick
Patrick Handley / Nina Coad / Nebat Sukker 020 7404 5959
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