Wood Group returns to revenue growth as bosses promise of more gains to come
Wood Group has returned to revenue growth of $3.2bn (£2.6bn) over the past six months following strong demand in its consulting and operations and a billion-dollar disposal.
While the FTSE group noted a decline in projects in the six months ended 30 June, it hailed a strong order book, which has grown 18 per cent year-on-year to more than $8bn (£6.7bn).
Bosses expect a stronger performance in the second half of the year, supported by the higher order book, as they anticipate the cash windfall from the sale of its built environment consulting to be realised.
The group sold off the consulting arm to WSP Global for a whopping $1.9bn (£1.5bn) at the beginning of June, which bosses say will improve Wood’s net debt position later this year in a “new chapter” for the company.
Ken Gilmartin, CEO, said: “While our debt remains high, the sale of the built environment consulting business will restore the financial flexibility necessary to deliver our strategy, and we are making good progress towards completion in the second half.
“While we are mindful of the current global macro uncertainty, we have an exciting future in front of us across the global energy market, addressing both security and sustainability. We have the people and skills to capture the opportunities ahead and deliver sustainable free cash flow.”