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John Wood expects flat interim revenue but improved performance ahead

Thu, 7th Jul 2022 10:35

(Alliance News) - John Wood Group PLC on Thursday guided for its revenue to be flat in the first half, with slowed earnings, but expects a pick-up in performance in the second half.

For the first half, ended June 30, the Aberdeen-based engineering and consulting business expects to report revenue of around USD3.2 billion, which would be broadly flat on the year prior.

"It is encouraging to see the improving operational momentum in our business, especially the growth in our Projects order book, supported by a backdrop of strong market demand for our engineering solutions," recently appointed Chief Executive Ken Gilmartin said.

Gilmartin took up the role on July 1, after being appointed as chief operating officer in August of last year.

It has also guided for interim adjusted earnings before interest, taxes, depreciation, and amortization to be about USD250 million, with a "relatively robust" performance in Consulting and Projects offset by a decline in Operations. In the first half last year, it recorded adjusted Ebitda of USD262 million.

John Wood pointed to an 18% year-on-year rise in its group order book, which has risen 5% year to date, and sat at USD8.1 billion at May 31.

Kilmartin continued: "While our debt remains high, the sale of the Built Environment consulting business will restore the financial flexibility necessary to deliver our strategy, and we are making good progress towards completion in the second half."

John Wood will publish its interim results on August 23.

"We expect higher revenue in 2022 across our business supported by the continued growth in our order book," it said. "We expect a stronger performance in the second half, helped by an improved performance in our Turbines joint ventures and stronger revenue growth, particularly in our Projects business."

Shares in John Wood were 3.5% higher in London on Thursday morning at 147.55 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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