Aberdeen-headquartered Wood (LON: WG) has reported a “mixed quarter” as areas of the business delivered a “disappointing” period, CEO Ken Gilmartin shared.
The firm announced revenues of $1.486 million during the period, a 1% year-on-year increase, as it continued with its “simplification programme”.
Earlier this year Wood said it was looking to raise $165m after signing separate sales agreements to sell two of its non-core businesses.
This quarter it completed the sale of its CEC Controls Company and agreed the sale of Aberdeen-based EthosEnergy.
“The increasing quality of our business is evidenced by higher pricing, expanded margins and a higher share of our pipeline from sustainable solutions,” Gilmartin wrote in a stock market update.
The firm’s projects business was said to have had a “disappointing quarter” as it was stuck with delayed contract awards in chemicals and “weakness in minerals and life sciences.”
Gilmartin commented: “As such, we continue to take actions to redress this underperformance.”
© DC ThomsonThe firm said that its order book stood at around $5.4 billion at the end of September, an 8% reduction compared to the year previous.
It’s backlog is also valued lower than the $6.1 billion position at June 2024. However, the firm has continued with “exceptional contract write-offs” as it exited lump sum turnkey and large-scale EPC work.
Gilmartin added: “It was, however, a mixed quarter for group performance. We saw strong year-on-year growth in Operations and margin expansion in Consulting.”
At the time of the business’ half year results, its CEO shrugged off a £754million loss as he confirmed the company has booked more and profitable business.
In its latest update Wood said it expects its net debt to be at a similar level to the end of last year come the end of December. In 2023 the firm reported debt of $694 million.
However, it only expects to reach this by completing the sale of EthosEnergy by year end.
The CEO concluded: “We have reiterated our full year guidance of high single digit growth in EBITDA and net debt to be broadly flat compared to last year, assuming the sale of EthosEnergy completes by year end.”
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