Wood Group 1H profits in line with expectations, trading described as 'good'

Wood Group posted strong revenue growth for the half and said that adjusted operating profits were in line with its own forecasts.

"Trading shows continued good growth and margins in line with our expectations. We have won a number of significant contracts in energy, minerals and life sciences during the period, all testament to the exciting position Wood holds in its key growth market," company boss Ken Gilmartin added.

"As we look ahead, we are confident of our delivery both for the full year and medium term, including a return to generating positive free cash flow."

The engineering outfit's topline grew by 15% at actual exchange rates to reach approximately $2.9bn and growth across all units was described as "good".

Revenues at the Projects and Operations units both reported 26% growth to reach $1.2bn each.

In adjusted terms, earnings before interest, taxes, depreciation and amortisation rose abut 6% to $195m.

The company's net debt position excluding leases worsened from $393m at the end of 2022 to $650m or roughly 2.2 times its EBITDA excluding leases.

On the outlook, management said that its full-year performance would be in line with its medium-term target for growth in adjusted earnings before, interest, taxes, depreciation and amortisation in the mid-to-high single digits.

It also reiterated that it would turn free cash flow positive in the second half of 2023 and positive in 2024 as a whole.