Wood prepares for delays as order book slips
Robin Watson: ‘continuing to win work’ (pic: Terry Murden)
Energy services company Wood said its order book had slipped and it was prepared for further delays and postponements because of the pandemic.
Adjusted Ebitda was down 19% and like-for-like revenue 11% in the first half while the $7 billion order book was also down 11% since December.
During April and May, the Aberdeen-based company booked new orders of $1.3bn including; engineering, procurement and construction work for GSK, onshore wind and solar EPC awards in the US, EPCm to increase production of an oilfield in Iraq, and an LNG renewal in Asia Pacific.
It also secured a five-year framework agreement with the US Navy for engineering, design and maintenance of fuel installations.
Strategy to broaden the business has been reflected in the company’s changing profile. Renewables activity is up 4% and upstream & midstream activity down 5%.
In a trading update it said: “In the first half we have seen the effect on our business of the unprecedented events of Covid-19, its impact on the global economy, and significant levels of oil price volatility.
“This has reinforced our view that our strategy to substantially broaden our consulting, projects and operations business across diverse energy and built environment markets has been the right one.
“Typically, around 80% of our full year revenues are either delivered or secured at this point in the year. However, in 2020 the risk of further delays and postponements persists and we are prepared for a wider range of outcomes depending on activity across our broad end markets.
“Our completed actions to protect margin give us confidence in delivering significantly stronger margins in the second half.”