Oil engineer Wood Group sees profit lift as order book strengthens
Oil industry services company Wood Group has posted a near double-digit profit uptick on the back of a bevvy of major contract wins.
In a FY23 trading update today, the Aberdeen-headquartered engineering firm said it returned around $6bn in profits for the period, up nine per cent on FY22.
The gains come on the back of the oil firm winning significant engineering development contracts such as Woodside’s Trion project, the deepest semi-submersible facility in the Gulf of Mexico, and BP’s North Sea Murlach development.
The company’s order book also included developments for Norway’s Equinor and German offshore wind farms and came to around $6.1bn — up four per cent on a comparable basis.
Nearly half (40 per cent) of the company’s bidding pipeline is coming from sustainable solutions.
FY23 adjusted EBITDA was slightly ahead of guidance, up nine per cent from $420m to $425 million and adjusted EBITDA margin was slightly above seven per cent including opex investments in the year.
The operations division, meanwhile, saw like-for-like revenue growth of around seven per cent to c.$2.5bn, driven by higher activity levels across the business, particularly in Europe and the Middle East.
Costs edged upwards slightly to $75m from $74m the year prior, while revenues in the investment services division leapt 35 per cent to $300m.
The company’s full-year results are expected on 26th March.
Additionally, Wood Group’s share price has nudged up 0.13 per cent just after the market opening this morning.
Last year, it seemed the company was inching close to an acquisition deal to be bought by American private investment firm Apollo Management, on the fifth attempt of by the latter.
The deal, a final bid of 240p per share in cash representing a 20 per cent increase on the first offer, was spiked, however.