Aberdeen's Wood flags return to revenue growth and strong order book

Wood, the Aberdeen-headquartered global energy and engineering services group, has flagged a return to revenue growth and strong order book momentum as a major restructuring nears completion.

In a first-half trading update, the firm highlighted positive operational momentum and good progress towards completion of its Built Environment sale.

Wood recently agreed the sale of the Built Environment consulting arm to Canada’s WSP Global in a deal worth about $1.9 billion (£1.5bn), hailing the marking of a “new chapter” for the group.

In the latest trading update, new chief executive Ken Gilmartin told investors: “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.”

He added: “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. I look forward to saying more on our plans at our half-year results.”

The group reported order book growth up 18 per cent year on year and up 5 per cent in the year to date. Several key contracts have been awarded, including a ten-year partnership with Chevron.