Wood Group reiterates FY guidance

9th Nov 2023 08:27

(Sharecast News) - Engineering and consulting business John Wood Group reiterated its full-year outlook on Thursday after securing "significant contract wins" in the third quarter.

John Wood Group said group revenues came to $1.47bn in the three months ended 30 September, representing growth of 8% year-on-year, with all of its business units delivering growth. Year-to-date revenues were up 13% at $4.46bn.

The FTSE 250-listed firm said consulting revenues were up 22% in the quarter at $190.0m, while quarterly projects revenues were 6% higher at $604.0m. Operations revenues grew 4% to $613.0m and investment services revenues surged 31% to $71.0m.

John Wood also highlighted that third-quarter and year-to-date adjusted underlying earnings were in line with expectations, partly driven by significant contract wins with the likes of Harbour Energy and Shell.

The group's order book was around $5.9bn at the end of September, flat year-on-year and slightly lower than at the same time at the end of June.

"Revenue is expected to continue to grow in the second half, albeit at a lower rate than the first half," said Wood, which reiterated its full-year revenue guidance of $6.0bn. "Adjusted EBITDA for FY23 is expected to be within our medium-term target of mid to high single-digit growth"

Wood continues to expect "a significant improvement" in operating cash flow and said its guidance on exceptional cash outflows remains unchanged.

As of 0845 GMT, Wood Group shares were down 2.88% at 148.30p.

Reporting by Iain Gilbert at Sharecast.com