LONDON (dpa-AFX) - Energy services company Wood Group (John) PLC (WDGJF.PK, WG.L) Friday said it expects first-half revenue to be around $4.1 billion, adjusted EBITDA around $295 million to $305 million, and operating profit before exceptionals to be around $80 million to $90 million.
In the prior year first half, revenue was $4.79 billion, adjusted EBITDA was $384 million and operating profit before exceptionals was $160 million.
On a like for like basis, adjusting for the disposals of the nuclear and industrial services businesses, first-half revenues will be down around 11 percent.
The company said the fall in first-half revenues was heavily weighted to the second quarter. Revenue in the second quarter is expected to be $2.0 billion.
Adjusted EBITDA on a like for like basis will be down around 19 percent with margins down about 70 basis points.
Adjusted EBITDA margins in ASEAAA maintained and improved in TCS. ASA margins impacted by cost overruns on the legacy energy projects.
Order book at the end of May was $7.0 billion, down about 11 percent since December 2019, of which about $3.5 billion is due to be delivered in 2020.
Looking ahead for fiscal 2020, the company said it remains focused on protecting margin in line with strategic objectives.
The company said, 'Typically, around 80 percent 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.'
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