John Wood Group PLC has confirmed full-year guidance as it reported good trading in the first half of the year across all business units.
The firm said revenue in the six months to June 30, 2023, was around US$2.9bn, up 15%, while adjusted EBITDA of US$195mln, was 6% higher.
Adjusted EBITDA margin of around 7%, was down from last year’s 7.2%, reflecting increased pass-through revenue in Projects and previously-guided opex investments.
Good growth was seen in all business units with a strong advance in Projects, up 26%, that included higher pass-through revenue and weaker comparatives.
John Wood said it expects to generate positive free cash flow in the second half of 2023, and remains on-track to deliver positive free cash flow in 2024, as previously guided.
Ken Gilmartin, John Wood CEO, said: “Trading shows continued good growth and margins in line with our expectations.
“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 order book as at June 30 was around US$6bn.
In a separate statement, the firm also announced a contract extension worth US$250mln by Brunei Shell Petroleum, Brunei's largest energy producer.
The two-year extension will focus on the continued rejuvenation of BSP's offshore energy asset portfolio to maximise production capacity and efficiency.