Oil services firm Wood Group forecasts return to growth after being battered by Covid slowdown
Oil services firm Wood Group has posted a slump in first-half revenues after taking a hit from the pandemic, but stuck by forecasts for a return to growth by the end of the year.
The Aberdeen consulting and engineering firm suffered a 23 per cent slump in turnover to £2.3billion for the six months to June 30.
Covid and a £54million loss of revenues from the sale of parts of the business were blamed.
Covid slump: Aberdeen consulting and engineering firm Wood Group suffered a 23 per cent fall in turnover to £2.3bn for the six months to June 30
Losses were £8.3million, compared with a loss of £7.7million a year ago. The group held off from paying any interim dividend but it has faith in the future.
Chief executive Robin Watson said: ‘Trading momentum and good growth in our order book, which is up around 18 per cent year-to-date, underpin our confidence in delivering a stronger second half which will reflect a return to growth.’
The order book was £5.6billion at the end of June, with around £2.2billion of that due to be delivered in the second half.
Wood Group recently secured the first government-backed ‘green transition loan’ in a deal worth £430million.
Under the agreement, it will commit to increasing its clean energy portfolio and significantly reducing its greenhouse gas emissions over a five year period.