Aberdeen's Wood updates investors on trading and takeover approach

Wood, the Aberdeen-headquartered energy and engineering services heavyweight currently in the takeover spotlight, has seen first-quarter revenues rise reflecting “good momentum” across all business units.

In a brief trading update to coincide with its annual shareholder meeting, the firm told investors that group revenue in Q1 increased to around $1.45 billion (£1.15bn), against a backdrop of a weak first quarter period in 2022. Adjusted underlying earnings were in line with expectations in the quarter and the firm continues to invest in its business “to deliver on our growth potential”, Wood added.

The order book at the end of March stood at about $5.7bn, slightly lower than in December 2022, but reflecting the phasing of large multi-year awards. The order book for delivery in 2023 has continued to build and is up “significantly” on the position a year ago.

Hide Ad
Hide Ad

Bosses added: “While we remain mindful of the uncertain economic outlook, our expectations for 2023 remain unchanged. As outlined in March, performance for 2023 will be weighted to the second half of the year. The exceptional cash outflows in 2023 are weighted to the first half of the year, and the tax payable on the sale of Built Environment Consulting was paid in the first quarter.”

Last month, Wood, which is led by chief executive Ken Gilmartin, said it had decided to “engage” with its US private equity suitor to firm up an offer after a £1.7 billion takeover approach. Shares jumped following the decision to finally warm up towards Apollo Management’s advances, having previously rejected four proposals from the firm.

In its latest trading update, the Aberdeen group noted: “As announced on April 17, Apollo Management Holdings is required either to announce a firm intention to make an offer for Wood or to announce that it does not intend to make an offer by no later than May 17. Further announcements will be made as appropriate.”

In January, Wood said it had entered the new year with “positive momentum” after building up a solid order book and reporting strong underlying revenue growth. Analysts said the group was “beginning to turn a corner”.

Related topics:



Want to join the conversation? Please or to comment on this article.