Wood Group (John) PLC (LSE:WG.) raised guidance after reporting better-than-expected revenue at half-way with growth in all business units.
The engineering and consultancy group said revenue in the six months ended 30 June 2023 rose 16% to $2.99 billion, from $2.57 billion the year before, ahead of expectations laid out in July’s trading update.
Adjusted EBITDA climbed 8.5% to $202 million from $186 million but the firm reported a statutory loss for the period of $27 million compared to a profit of $89 million last time, due to lower profit from discontinued operations and a number of exceptional items.
Wood saw double-digit revenue and pipeline growth across the majority of its key markets with excellent growth across carbon capture and hydrogen, while the order book at $6 billion is 5% higher than in December 2022.
Ken Gilmartin, CEO, said: “As we look ahead, we are confident that our actions, the business model we have implemented and the market growth opportunities to which we have aligned, support the momentum we are building in our business. As such, we are increasing our full-year guidance for the year for revenue and EBITDA."
The firm now expects revenue for 2023 to be around $6 billion with an adjusted EBITDA margin around 7%, meaning adjusted EBITDA is expected to be ahead of previous expectations and within its medium-term target of mid to high single-digit growth.
The group also announced David Kemp, chief financial officer, is to retire and a search for his successor is underway.