Wood has reported a strong half-year performance in 2022 in the wake of the sale of its built environment business.
The Aberdeen-headquartered group reported “positive operational momentum” in a trading update covering the first half of the year.
Group operating profit was around $95 million, compared to $86 million for the same period last year, as a result of lower amortisation charges.
In particular, it said the completion of the sale of its built environment arm would “transform” its balance sheet and offer the greater financial flexibility needed deliver its strategy.
The sale was agreed for $1.81bn, offering the company net proceeds of around $1.62bn.
Group-wide revenue grew to around $3.2 billion, as strong growth in its consulting and operations was partially offset by a 15% decline in projects, while adjusted EBITDA was around $250 million.
Net debt as of 30 June 2022 was around $1.7bn.
Wood said the dip in projects income reflects a “subdued market for large-scale investment” as well as its intentional move away from large-scale fixed price work.
However it expects revenue for the division to improve in the second half of the year, as new projects ramp up and investment increases.
Meanwhile, it said revenue from operations grew by around 17% to around $1.2 billion, on the back of higher activity and strong market conditions in conventional energy, especially in Europe and the Middle East.
The company also noted that order book growth was up 18% year on year to over $8 billion as of 31 May 2022.
CEO Ken Gilmartin said: “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.
“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, and in detail at a capital markets day in late Q4.”
Wood said it would publish its half-year results in full on 23 August.
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