John Wood Group PLC (LSE:WG.), which specialises in oilfield, gas and carbon capture services, has not updated the market since reiterating its yearly outlook for 2023 in November and though it could be on track to outpace its performance in the previous financial year, it might not sustain the increases seen in the third quarter.
The energy services and consultancy group is due to provide a trading update for fiscal 2023 on Friday, 12 January.
In November, the business confirmed its trading outlook for the full year after what chief executive Ken Gilmartin described as “another quarter of strong growth in revenue and EBITDA”.
Gilmartin said that the company was building “momentum”, revealing 8% growth in group revenue for the third quarter, totalling nearly US$1.48 billion.
At the time, the company said that as of 30 September, it had an order book amounting to about US$5.9 billion, flat on the same date a year earlier, but lower than its order book in June (of US$6 billion). That suggests that revenue in the final quarter of the year might not match up to the heights demonstrated in the third quarter.
The company said in November that its order book supported expectations for 2024 and that it expected to record further growth in the consulting segment, and through phased awards in projects and operations. It predicted “stronger” bookings in these areas in the fourth quarter, though bookings might not be recorded in the upcoming fiscal 2023 results.
Group revenue for the first nine months of the financial year was US$4.46 billion, representing 13% growth year on year including the impact of currency fluctuations.
Project revenue grew 19% over the year to US$1.85 billion for the first three quarters of the year. Revenue from operations grew 5% to US$1.86 billion, or 9% excluding the sale of its offshore labor supply operations in the Gulf of Mexico.
Turnover in its consulting business segment rose 17% during those first nine months of the fiscal year, due to be updated at the end of next week, to US$546 million.