Wood Group profits at top end of guidance

Wood Group said on Tuesday that full-year profit was at the top end of its guidance range, thanks in part to solid performances from its consulting and operations businesses.

In the year to the end of December 2022, adjusted earnings before interest, tax, depreciation and amortisation came in at $385m, down 4.7% from the previous year or flat at constant currency, and at the top end of the $375m to $385m guidance given in the January update.

Revenues ticked up 4% to $5.4bn, with growth of 4% and 15% respectively in the consulting and operations segments, offset by an expected decline in projects revenues, which fell 6%. Wood Group said the projects business returned to growth in the second half.

Chief executive Ken Gilmartin said: "We are pleased to have delivered results in line with expectations for 2022, including a return to revenue growth - with 8% growth at constant currency. This was achieved in a year of major change for the group, under new leadership, as we addressed legacy issues, transformed our balance sheet and launched a new strategy.

"Our strategy is already delivering. We started 2023 with good momentum - our order book for delivery in 2023 is up 10%, headcount is up 8% and financial guidance for 2023 is in line with our medium-term financial targets of adjusted EBITDA growth at mid to high single digit CAGR, with momentum building as our strategy delivers. We now we look to the future with confidence as a much stronger company."