John Wood Group plc, the Aberdeen-based engineering and consulting giant, on Thursday reported an order book of $6.1 billion, up 2% compared to June 2023.

In a trading update for the half year ended June 30, 2024, Wood reported revenue of $2.8 billion, down around 6%, “with good growth in operations offset by expected lower revenue in projects given our strategic shift away from EPC (engineering, procurement, and construction) work, lower pass-through activity and ongoing weakness in our minerals business.”

Wood said first-half adjusted EBITDA of $210 million was up around 4% “with margin expansion more than offsetting expected lower revenue.”

The firm said: “Simplification programme moving at pace with around $25 million of annualised savings already secured of the total annualised savings target of around $60 million from 2025.”

The update came as Wood awaits a potential takeover offer from Dubai-based firm Sidara.

On July 3, Wood announced an extension to the “Put Up Or Shut Up Deadline” for Sidara, which on May 29 made “a fourth and final” cash takeover proposal for Wood.

That proposal of £2.30 per share would have valued Wood Group at about £1.59 billion, representing a premium of 52% to its closing share price before the first bid was made. Wood shares are currently trading around £2.06.

Wood CEO Ken Gilmartin said: “Our growth strategy continues to deliver, with further growth in EBITDA and order book. Crucially, we are now seeing the improving quality of our business coming through with margin expansion as we focus on engineering services and consulting and move away from EPC work.

“As we look ahead, we remain focused on delivering our potential, including generating significant free cash flow next year. We are winning exciting and complex work across our businesses whilst progressing both our Simplification and disposal programmes. We are pleased to reconfirm our outlooks for both this year and 2025.”