John Wood Group PLC (LSE:WG.) said underlying earnings in 2023 came in slightly higher than its previous guidance, with cash flow much improved.
Revenue for the calendar year was around US$6 billion, up 9% on the prior year, the energy engineer said, thanks to contract wins in oil and gas, clean power and pharmaceuticals.
Adjusted EBITDA will come in between US$420 million and US$425 million, also up 9% as EBITDA margins were moderately above 7% including operating expenditure investment.
Operating cash flow came to US$210 million, reversing the US$66 million outflow last time, with around US$175 million operating cash flow generated in the second half.
Net debt excluding leases was higher than expected at US$680 million due to currency swings and the timing of customer receipts.
The order book had swelled by 4% over the year to US$6.1 billion, boosted by fourth-quarter oil & gas wins with Woodside, BP and Equinor, as well as an offshore clean power project in Germany, one focused on green hydrogen in Spain and an engineering contract to help produce active pharmaceutical ingredients.
Wood Group said it is “on track” to deliver positive free cash flow in 2024, as previously guided.