Wood boss hails ‘momentum’ despite revenue dive as order book swells to $7.7bn
Energy infrastructure group Wood has seen its orderbook swell to $7.7bn in the past six months, while revenue has taken a tumble.
Shares had slipped 0.64 per cent to 232.1p per share, following the announcement.
Revenue sank 22.9 per cent in its interim results for the six months to 30 June, which the group put down the impact of Covid-19 and a $74m reduction in revenue from disposed businesses.
The London-listed group posted $3.15bn in revenue, down from $4.08bn in the same period last year. Meanwhile, its operating profit lifted slightly by three per cent to $68m.
Despite the minimal growth, Wood boss Robin Watson hailed “improving momentum” in its second quarter trading.
“Trading momentum and good growth in our order book, which is up circa 18 per cent year-to-date, underpin our confidence in delivering a stronger second half which will reflect a return to growth compared to both H1 2021 and H2 2020.”
The group’s order book in June hit a valuation of $7.7bn, while the group keeps up its pivot towards more sustainable practices in the UK’s transition to net zero.
Just days ago Wood was on the receiving end of a landmark green-transition loan, backed by the government and UK Export Finance, worth £430m.
Investment manager at Brewin Dolphin, Stuart Lamont, said although revenue is down, “growth looks set to be on the agenda for the next six months”.
Lamont added that, “Today’s update from Wood shows the company is on a positive path towards recovering from the impacts of Covid-19 with long-term contracts being renewed and continuing momentum for the consulting division.
“Although there was a modest rise in debt levels this is expected to fall in the second half as weaker projects are offset by higher margins in consulting and growth in operations.”