Aberdeen-based engineering and consultancy group Wood said today it is expecting higher revenue this year across the business.
In a trading update for the first half of 2022, new chief executive Ken Gilmartin commented: "It is encouraging to see the improving operational momentum in our business, especially the growth in our projects order book, supported by a backdrop of strong market demand for our engineering solutions.
"While our debt remains high, the sale of the built environment consulting business will restore the financial flexibility necessary to deliver our strategy, and we are making good progress towards completion in the second half.
"While we are mindful of the current global macro uncertainty, we have an exciting future in front of us across the global energy market, addressing both security and sustainability.
"We have the people and skills to capture the opportunities ahead and deliver sustainable free cash flow.”
Revenues for the half year will be around $3.2billion (£2.68billion), while adjusted earnings before interest, taxes, depreciation, and amortisation will be about $250million (£209.15million).
Group operating profits before exceptionals will be around $95million (£79.48million), compared to $86million (£71.95million) in the first half of 2021.
Wood net debt at the end of June was about $1.7billion (£1.42billion).
Continued order-book growth
On the outlook for the full year, the group said it anticipated higher revenue in 2022 across the business supported by the continued growth in the order book.
It added: "We expect a stronger performance in the second half, helped by an improved performance in our turbines joint ventures and stronger revenue growth, particularly in our projects business."
Wood also anticipates the sale of the built environment consulting unit to improve the net debt position in the second half.
CEO Mr Gilmartin, who joined Wood as chief operating officer last August, took up the top role on July 1.
Wood currently employs around 40,000 people in more than 60 countries.
it is selling its built environment consulting business to WSP Global for $1.81billion (£1.51billion).
The unit has over 100 offices, predominantly in North America, with others located in the UK and elsewhere in Europe.
Built environment consulting employs around 5,500 consultants and technicians.
Canadian company WSP is one of the world's leading engineering professional services firms, with 37,000 people based in more than 500 offices, across 40 countries.
GOOD START FOR FTSE 100
The UK’s top share index, the FTSE 100, was up 70 points at 7,178 points shortly after opening this morning, following yesterday’s 82-point gain.
Brent crude futures were up fractionally at $100.78 a barrel.
Companies reporting today
- Full-year results: Currys
- Trading updates: Entain, J Sainsbury, Persimmon, Wood