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Profit jump comes alongside revenue drop for Wood in 2019

Robin Watson, chief executive of Wood.
Robin Watson, chief executive of Wood.

Aberdeen-headquartered energy services firm Wood has reported a profit jump in its full year results for 2019.

The firm’s financial results for the year saw a jump in pre-tax profit from £40 million in 2018 to £114m in 2019.

But Wood also experienced a slight drop in overall revenue, down from £7.6 billion in 2018 to £7.5bn last year.

Wood has undertaken work to streamline its operating model in 2019, agreeing the disposal of its nuclear and industrial services activities both of which completed in the first quarter of 2020.

Wood said its full year results “reflect the strong operational and financial focus of the leadership team”.

Robin Watson, chief executive of Wood said: “In 2019 we delivered earnings growth, margin improvement and strong cash generation which resulted in a reduction in net debt.

“Our strategy has driven decisive action to align Wood with the significant growth opportunities in energy transition and sustainable infrastructure and we made good progress on portfolio optimisation and the repositioning of our consulting, project and operations service offering in 2019.

“The disposal of our nuclear and industrial services businesses generated proceeds of c$430m in Q1 2020 and accelerated progress to target leverage.

“We are confident that from this foundation we are building a differentiated, premium, higher margin business, supported by a continued focus on margin improvement, execution excellence and portfolio optimisation.”

David Barclay, head of office at Brewin Dolphin Aberdeen, added: “Wood has delivered a robust set of results against a challenging 12 months for the business. The company has taken proactive steps to broaden its offering and focussed on debt reduction, supported by a targeted divestment programme.

“The benefits of its merger with Amec Foster Wheeler are still filtering through and there are more challenges ahead – not least the plunge in oil prices of the last few days – but Wood has relatively good visibility over future revenues and is in a decent position to grow in its other markets, while keeping leverage under control.”

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