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Wood Group (John)PLC (WG.)
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Thursday 13 December, 2012
Wood Group (John)PLC
Pre-close trading update
13 December 2012
John Wood Group PLC ("Wood Group")
Pre-close trading update
John Wood Group PLC ("Wood Group") issues the following pre-close trading
update for the year to 31 December 2012. Full year results will be announced on
5 March 2013.
Overall, conditions in energy markets remain favourable. The Group expects to
deliver good growth for the year in line with expectations.
Our Engineering division is performing well and continues to anticipate that
2012 EBITA will be up over 30%. Headcount was 10,300 at the end of November. In
upstream, work is progressing on the Ichthys and Mafumeira Sul projects in
Australia and Angola respectively, and we remain active on a number of offshore
projects in the Gulf of Mexico including Hadrian and Lucius. In the Canadian
oil sands market we anticipate some reduction in activity in 2013. In subsea
and pipelines, we are particularly active in the North Sea and the North West
Shelf of Australia, and continue to see good activity levels in onshore
pipelines in North America. In downstream, the market outlook remains generally
subdued, albeit we have seen some improvement in performance in the second
half.
In Wood Group PSN, growth for the year is underpinned by strong performance in
the North Sea and in North America, particularly in the US shale regions where
we completed the acquisition of Mitchell's in North Dakota during October. In
Oman, we have taken steps on a number of key matters to improve performance on
our contract with PDO. Losses for the year are expected to be around $20m and,
subject to further progress, we anticipate significantly reduced losses on the
contract in 2013 and that 2014 will be profitable. Elsewhere, we remain active
in a number of other international locations including Africa, the Caspian and
Australia.