Wood Group sees growth across all divisions

International energy services company Wood Group, posted a 20 per cent rise in revenue from continuing operations in its full year ended December 31st, boosted by growth in all three divisions.

Revenue from continuing operations totalled $6,821.3m (2011: $5,666.8m), while earnings before interst, tax, and amortisation (EBITA) from continuing operations came in at $461.1m (2011: $341.6m), up 35%. The EBITA margin increased from 6.0% to 6.8%.

Profit from continuing operations before tax and exceptional items was $362.7m (2011: $254.1m), up 43%, and adjusted diluted earnings per share were 85.2 cents (2011: 60.2 cents), up 42%.

The total dividend for the year was up 26% at 17 cents per share (2011: 13.5 cents), following a final dividend payment of 11.3 cents, reflecting the company's "confidence in the longer term outlook for the group".

Chief Executive Officer Bob Keiller said: "Our 2012 financial results represent another year of strong growth with EBITA up 35%, reflecting the focus and hard work of our people around the world. Wood Group is a great company and I believe we can be even better if we harness our collective strengths more effectively and operate in a more joined-up manner.

"We are set to make progress in all divisions in 2013, and I look forward to leading our further development in good long term growth markets."

Divisionally, Wood Group Engineering delivered its second consecutive year of 30% EBITA growth, with particular strength in upstream and subsea & pipelines. In 2013 the company anticipates further revenue growth and margin improvement.

Wood Group PSN delivered a good performance in the North Sea and experienced strong growth in North America. The company said it is "well placed" to deliver a strong performance this year.

Wood Group GTS increased revenues in Maintenance and its EBITA were up around 10%. Power Solutions EBITA was slightly up on 2011, and looking ahead the group expects to see an improvement in Maintenance in 2013.

Keiller added: "I believe that the Group can be stronger if we harness our collective strengths more effectively and operate in a more joined-up manner. There are further opportunities for cross-selling and pull-through, making better use of the depth of resources we have."

Cash at the year end totalled $172.3m, compared to $226.6m at the close of 2011.

The share price rose 3.83% to 787p by 08:25.

NR