(Alliance News) - John Wood Group PLC on Thursday said revenue and profit is set to fall in the first half of 2021, but kept its forecast unchanged as it sees improving momentum for the rest of the year.
Like-for-like revenue will plunge 21% year-on-year to USD3.2 billion from USD4.01 billion, the energy industry support services company said in a trading update, citing the "impact of Covid-19".
Adjusted earnings before interest, tax, depreciation and amortisation will be between USD255 million to USD265 million, down from USD296 million.
Shares in the FTSE 250 firm were down 3.9% to 220.17 pence in London on Thursday morning.
John Wood's projects unit, which makes up around 40% of revenue, is set to be the weakest performer with sales dropping 40% year-on-year. The higher-margin consulting business will be flat year-on-year, while the operations unit will see revenue fall 8%.
But the Aberdeen-based company sees positive signs, with "improving momentum in activity" in the second quarter. The like-for-like adjusted Ebitda margin will be between 8.0% and 8.3%, up from 7.4% in the first half of 2020, as consulting will account for a bigger proportion of revenue.
The order book at the end of May was worth USD6.9 billion, up from USD6.2 billion at the end of December.
The firm kept its full-year outlook for "lower activity" and a wider Ebitda margin unchanged, and said it will return to growth in the second half.
By Ivan Edwards; ivanedwards@alliancenews.com
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Wood Group (J) (WG.)