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Oil and Gas News
Wood Reports 8% Revenue Growth to $1.47 Billion in Q3

Posted 13/11/2023 14:31

John Wood Group, an Aberdeen-based engineering consultancy, has reported an 8% growth in revenue during the third quarter, reaching $1.47 billion compared to $1.36 billion in the same period the previous year. The trading update for the quarter ended on September 30 also highlighted group revenue for the first nine months of the year at $4.46 billion, representing a growth of 13%.

Key highlights from the trading update include:

  1. Consulting Division: Revenue grew by 22% to $190 million in Q3, with year-to-date revenue up 17% to $546 million. The growth was led by performance in digital consulting.

  2. Projects Division: Revenue increased by 6% to $604 million in Q3, and year-to-date revenue grew by 19% to $1.84 billion. The division's earnings were higher than the previous year, supported by revenue growth and improved contract performance.

  3. Operations Division: Revenue was up 4% to $613 million in Q3, with a growth of 9% excluding the sale of Gulf of Mexico. Year-to-date revenue increased by 5% to $1.85 billion, driven by higher activity levels, especially in Europe and the Middle East.

  4. Investment Services Division: Revenue rose by 31% to $71 million in Q3, and year-to-date revenue increased by 45% to $212 million. The growth was attributed to higher activity in the heavy civils business and the facilities business transferred from projects at the beginning of the year.

Wood's order book at the end of September was approximately $5.9 billion, flat on a comparable basis to September 2022 and slightly lower than the position in June 2023. The company highlighted significant contract wins during the period, including a strategic partnership with Harbour Energy and a global framework agreement with Shell.

Wood's CEO, Ken Gilmartin, expressed confidence in the company's strategy and noted continued progress in sustainable solutions, making up 35% of the pipeline. The company expects revenue to continue growing in the second half, albeit at a lower rate than the first half, and the adjusted earnings margin is expected to be flat in the nearer term, around 7%.

The order book and positive contract wins indicate Wood's strong performance and ongoing momentum in executing its growth strategy.

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