Aberdeen-based global engineering firm John Wood Group — facing a potential takeover offer from New York private equity firm Apollo Global Management — said in a trading update for its AGM on Thursday that its revenue increased to around $1.45 billion for the quarter ended March 31, 2023.
Wood Group said the revenue reflected “good momentum across all business units and higher pass-through revenue” and that its order book at March 31 was around $5.7 billion, slightly lower than December 2022.
The firm said order book for delivery in 2023 has continued to build and is up significantly on the position a year ago.
One of Scotland’s biggest companies, Wood operates in more than 60 countries and employs 35,000 people.
Wood has extended a “put up or shut up” takeover offer deadline for Apollo to May 17.
Apollo said on April 4 it made a “final” and “possible offer” for Wood Group pitched at £2.40 per share in cash, valuing Wood at £1.66 billion. Wood shares are trading around £2.21.
“Against a backdrop of a weak Q1 2022, group revenue in Q1 increased to around $1,450 million, reflecting good momentum across all business units and higher pass-through revenue,” said Wood in its trading update.
“Group adjusted EBITDA was in line with our expectations and we continue to invest in our business to deliver on our growth potential.
“Our order book at 31 March 2023 was around $5.7 billion, slightly lower than at December 2022 and reflecting the phasing of large multi-year awards in operations.
“The order book for delivery in 2023 has continued to build and is up significantly on the position a year ago.
“In line with our strategy, we completed the disposal of the Gulf of Mexico labour operations business for $17 million in March 2023.
“This business contributed around $90 million of revenue and around $3.5 million of adjusted EBITDA in 2022.”
In its outlook for 2023, Wood added: “While we remain mindful of the uncertain economic outlook, our expectations for 2023 remain unchanged. As outlined in March, performance for 2023 will be weighted to the second half of the year.
“The exceptional cash outflows in 2023 are weighted to the first half of the year, and the tax payable on the sale of Built Environment Consulting was paid in the first quarter.”