Trading Statement

Wood Group (John) PLC
02 July 2004



John Wood Group PLC: Trading Update

John Wood Group PLC ('Wood Group', 'the Group'), the international energy
services company, issues the following pre-close period trading update ahead of
the announcement of the Group's interim results for the six month period ended
30 June 2004.

Although we expect revenues to grow in 2004, we expect our EBITA to be somewhat
lower than last year. The business trends are broadly as anticipated in our
recent statement. Good profit growth in Well Support but EBITA down in
Engineering and Production Facilities with the impact of delays in the deepwater
engineering contracts, and Gas Turbine Services continuing to be adversely
affected by the surplus power generation capacity in the US power markets.
However, we are increasingly confident that market improvements in deepwater,
our programme to reduce costs and enhance our differentiation in Gas Turbine
Services, and the growth potential in the rest of our activities, will return us
to acceptable growth in 2005.

In Engineering & Production Facilities, the revenues are expected to be broadly
similar to 2003 but the anticipated continuing delays in the award of deepwater
engineering contracts are reducing our higher margin engineering revenues. This,
combined with the resulting lower manpower utilisation levels in Engineering and
the increased costs of developing new international markets across the division,
will lead to lower than anticipated EBITA margins. Some deepwater work is being
awarded - this year we have already won ChevronTexaco's Tahiti and Kerr McGee's
Constitution projects and are well placed for further project awards as they are
released. We are developing our activities in midstream (LNG and gas to liquids)
and downstream (clean fuels and pharmaceuticals) and are extending our strong
engineering franchise into the Eastern Hemisphere. Production Facilities is
maintaining its significant market share in the North Sea (BP announced earlier
this week its intention to renew our significant North Sea contract) and the
Gulf of Mexico, and building on its presence in Colombia, Venezuela, West Africa
and Brunei. Engineering & Production Facilities is also increasing its business
development investment in the expanding markets in Russia, Mexico and North
Africa.

Well Support is showing strong growth. Wood Group ESP is increasing its market
share around the world, with particular success in South America and Russia.
Pressure Control is maintaining a substantial share of the US market for surface
valves and wellheads and continuing to successfully grow its position outside
the US.

Gas Turbine Services has been focused on the adjustment to the downturn in the
US power market. The continuing difficulties in the market and the inevitable
disruption from the restructuring programme will result in our first half 2004
performance being similar to the second half of 2003, and although we believe we
will see a clear improvement in the second half of 2004, the year's EBITA will
be down on 2003. We are well advanced in implementing a programme of cost
reductions and efficiency increases, including rationalisation of facilities and
service lines as well as the reduction of personnel in certain areas. This will
result in an exceptional charge of between $20m - $25m in the first half of
2004. We are also enhancing our differentiation, including increased support of
the advanced F-Tech heavy industrial turbine machines and undertaking long term
maintenance agreements where competition is more limited. The restructuring
savings should be around $8m in a full year and will begin accruing in the
second half of 2004. These savings, together with our increasing penetration in
markets outside North America, give us confidence that Gas Turbine Services will
show good profit recovery in 2005.

Looking ahead, our strategy remains robust and we are well positioned in
fundamentally strong markets. The significant changes in Gas Turbine Services,
the anticipated pick-up in deepwater contract awards in 2005, the growth
prospects in Well Support, elsewhere in Engineering, and in Production
Facilities, all give us confidence we will return to acceptable growth in 2005.


1. EBITA is operating profit before the deduction of goodwill amortisation and
exceptional items. This financial term is provided because it is the key unit of
measurement used by the Group in the management of its business.

CONTACTS

Wood Group Tel: [phone]

Alan Semple
Nick Gilman
Carolyn Smith

Brunswick Tel: [phone]
Patrick Handley



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