Aberdeen's Wood Group sets out 'refreshed strategy' as annual sales and profits remain on track

Wood, the Aberdeen-headquartered global energy and engineering services group, is on track to report annual revenues of at least $5.2 billion (£4.3bn) after reaffirming its guidance for the year.

In a trading update issued ahead of a capital markets day, the group repeated its forecast for full-year revenue of between $5.2bn and $5.5bn. Adjusted underlying earnings are expected to be broadly around the middle of a guidance range of $370 million to $400m. This is after the negative impact from recent exchange rate movements, the firm noted.

Wood also outlined its new strategy and medium-term financial targets, with the focus on “attractive end markets where we are differentiated”. Chief executive Ken Gilmartin told investors that the group’s turnaround was “progressing well”.

He said: “Today is an important moment for Wood as we set out our refreshed strategy. There is huge potential in Wood - we have over 35,000 highly skilled colleagues, long-term client relationships and leading engineering and consulting capabilities. We are now taking a more focused approach to growth, targeting specific priority markets across energy and materials that best match our competitive strengths. This tighter focus will help ensure we can grow both profitably and sustainably.

Ken Gilmartin became the new chief executive of Aberdeen-headquartered Wood Group earlier this year.

“Our turnaround is progressing well, accelerated by the sale of Built Environment Consulting and helped by the work done to focus the group on lower risk, reimbursable work. We have addressed legacy issues and our strong balance sheet will allow us to deal with the defined schedule of resulting cash outflows,” he added.