Wood Group Presents First Half 2011 Results (UK)

John Wood Group PLC is a market leader in engineering design, production enhancement and support, and integrated industrial gas turbine maintenance services for customers in the oil & gas and power generation industries around the world. Wood Group employs approximately 35,000 people1 and operates in over 50 countries.

Financial Highlights

• Total revenue6 of $2,828.8m (2010: $2,409.7) up 17%
• Total EBITA2,6 of $192.0m (2010: $153.3m) up 25%
• Revenue from continuing operations, including PSN since acquisition and excluding Well Support, of $2,481.8m (2010: $1,959.7m) up 27%, and EBITA from continuing operations of $133.6m (2010: $99.8m) up 34%
• Profit from continuing operations before tax and exceptional items of $102.4m (2010: $68.8m) up 49%
• Post tax exceptional gain of $2,154.0m (2010: nil)

• Basic earnings per share, including net exceptional gain of $2,154.0m, of 444.0 cents (2010:15.8 cents)
• Adjusted diluted earnings per ordinary share3 of 25.2 cents (2010: 17.4 cents) up 45%
• Interim dividend of 3.9 cents (2010: 3.4 cents) up 15%
• Completed arrangements to return cash to shareholders of £1.1bn

Group Highlights

• Following the acquisition of PSN and disposal of the Well Support division, the refocused Group is well positioned as:
• A world leading engineering business with strong market positions in upstream, subsea & pipelines (“Engineering”)
• The world leading production facilities support provider, formed by the merger of PSN and Wood Group’s Production Facilities business (“Wood Group PSN”)
• The world leading independent provider of integrated maintenance services for industrial gas turbines (“Gas Turbine Services”(“GTS”))

Operating Highlights

Engineering

• Good first half revenue growth and margin improvement
• Strong performance in upstream and subsea & pipelines
• Continued order book strength and good bidding pipeline

Wood Group PSN

• Good activity levels in the North Sea
• Improved geographic coverage
• First half benefitting from strong performance in the US, held back by start up delays in Australia and Oman
• Integration progressing well and strong second half performance anticipated

GTS

• Maintenance EBITA up over 20%
• Power Solutions contracts progressing well
• Strong growth in 2011 expected from improved Maintenance performance and good contribution from Power Solutions in the second half

In their half year report, Sir Ian Wood, Chairman, and Allister Langlands, Chief Executive, of Wood Group, state:

“The Group has delivered good growth in the first half and anticipates that full year performance will be in line with expectations.

“The first half of 2011 has been a period of exciting change for the Group as we completed our strategic repositioning to focus on world leading positions in engineering, production facilities support and gas turbine services. Following the acquisition of PSN, the disposal of the Well Support division and the return of cash to shareholders, we are well positioned to deliver good longer term growth.

“Market conditions have continued to improve during the period with global exploration & production spending forecast to increase in 2011 and 2012. Despite the recent volatility in financial and commodity markets, we continue to see good momentum across our business.

“The longer term fundamentals for oil & gas development & production, and gas fired power generation remain strong. Reflecting continuing confidence in our longer term outlook, we have declared a 15% increase in the interim dividend.”

[mappress]
Source: Wood Group, August 23, 2011