Wood Group Enjoys 45% Increase, $315 Million in Growth
Wood Group’s global markets remain strong and we continue to make good progress. The Board anticipates that Group EBITA for the year will be ahead of market expectations, up by more than 45% on last year at around $315m, with all three divisions delivering increased revenues and margins.
Engineering & Production Facilities has grown strongly in the year. In Engineering, we have seen good progress in Houston, London and Perth and are continuing to develop newer areas such as Norway, India, the Middle East and Asia Pacific.
In November we completed the acquisition of IMV, to give us a market leading position in engineering, procurement and construction management for in situ oil sands developments in Canada.
In Production Facilities, we have successfully extended key major contracts and won a number of duty holder roles in our North Sea market where we are seeing continuing customer focus on efficient project delivery, integrity enhancements and subsea tie backs. We have also made good progress in our international markets including Algeria, Equatorial Guinea and Trinidad.
Our Well Support businesses have continued to perform well. In Electric Submersible Pumps we have seen high levels of activity in our long term contracts and delivered good growth in Russia, where we have recently won our first performance based contract. In Pressure Control, our international development continues with ongoing success in Mexico, Saudi Arabia and North Africa. In Logging Services, we delivered a good performance from Argentina and are continuing to develop our position in new areas in the US, including the Barnett Shale and the Rockies.
Gas Turbine Services continues to make good progress. We are performing strongly in the oil & gas market, benefiting from our investment in extending our aftermarket services for a wide range of industrial turbines. In the power market we are seeing increasing gas turbine power demand around the world. During the year we were awarded a number of contracts delivering fast track power packages, and continue to see good potential in this area, particularly in developing economies. We are also building up our long term contract portfolio and continuing to position the business for further margin improvement in 2008.
Allister Langlands, Group Chief Executive, said, "Our businesses are performing well in strong oil & gas and power markets. We continue to expand our service range and geographic reach alongside our ongoing investment in successfully recruiting and developing high quality people. Looking to 2008, we anticipate markets will remain healthy and we are well placed to deliver further good growth."
- Wood to Design Pioneering LNG Platform (Oct 17)
- Wood Group Wins Total Refinery Maintenance Contract (Oct 11)
- Ichthys LNG Subsea Contract Goes to Wood Group (Sep 06)