Wood Group 2010 Final Results February 2011 Energy Supporting Energy
Strategic highlights Strategic decision to enhance the Groups focus and market-leading positions in its engineering, production facilities support and gas turbine services activities Acquisition of PSN for 955m announced December…
Oil & Gas and Power markets Global E&P expenditure up over 10% in 2010; expect at least similar 2011 increase extracting additional hydrocarbons from existing assets investment in exploiting increasingly challenging reservoirs…
Financial results Revenue by region 2010 2009 Change North America 37% Europe 30% m m % Rest of World 33% Revenue 5,063 4,927 3% EBITA1 345 358 (4%) Revenue by division EBITA margin 6.8% 7.3% (0.5%pts) E&PF 65% Amortisation…
Exceptional item 2010 m Closure of Connecticut facility 17 General GTS restructuring 4 M&A costs, primarily PSN 7 Total 28 5
Net finance expense 2010 m Interest on debt 20 Other interest charges Arrangement fees 8 Non-utilisation fees 5 Deemed interest 2 PSN fees 1 16 Net finance charge 36 Finance income (2) Net finance expense 34 6
Cash flow Cash generated from operations 2010 2009 (m) m m 600 EBITA 345 358 400 Depreciation & other non cash items 69 69 Cash generated pre working capital 414 427 200 Net working capital movements (19) 119 0 2006 2007…
Balance sheet Gearing (%) 2010 2009 m m 35% 30% 1,059 1,004 25% Non current assets 20% Net current assets 541 524 15% 10% Long term liabilities (168) (159) 5% 0% Net operating assets 1,432 1,369 2006 2007 2008 2009 2010 Net…
Capital structure Pro forma 2010 m Average net debt7 182 PSN acquisition finance 875 Well Support sale proceeds (2,800) Estimated tax fees and expenses 200 Net proceeds from Well Support disposal (2,600) Return of cash…
Pro forma 2010 2010 pro forma excludes Well Supports 2010 results and includes estimates8 for PSN for the same period 2010 Actual 2010 Pro forma Revenue EBITA Margin Revenue EBITA Margin Engineering & Production Facilities 3,280…
Engineering & Production Facilities 2010 2009 % change m m Revenue 3,280 3,242 1% EBITA 223 266 (16%) Margin 6.8% 8.2% (1.4%pts) 11% revenue growth in Production Facilities, offset by 11% reduction in Engineering Strength…
Engineering Headcount increased by 500 Improving market conditions, higher bidding volumes and project awards in Upstream Subsea and pipelines continuing to grow Downstream market remaining weak. Process and Industrial seeing…
Production Facilities North Sea - contract extensions with Hess, Talisman and Total US - Baker integration complete. Increased demand in shale regions West Africa - contract extensions with Hess and Marathon (E.G). Secured BP and…
Wood Group PSN - summary Acquisition will advance Wood Groups strategy Creates the global market leader in production facilities support The combination will have a broader geographic reach across oil & gas markets, including a…
Gas Turbine Services 2010 2009 % change m m Revenue 805 826 (3%) EBITA 46 66 (30%) Margin 5.7% 8.0% (2.3%pts) Maintenance revenues fell by 20m, principally reflecting lower spending in North America and Europe Power…
Gas Turbine Services Maintenance Oil & gas contract wins in Peru, Canada and Iraq Longer term power contracts secured in Oman, Germany, Australia and the US Power Solutions Some market recovery resulting in Dorad and GWF awards…
Well Support 2010 2009 % change m m Revenue 947 814 16% EBITA 128 75 71% Margin 13.5% 9.2% 4.3%pts 16% increase in revenue due to impact of strong US rig count on Pressure Control and Logging, together with good ESP…
Disposal of Well Support Signed agreement to sell the Well Support Division to GE for a consideration of 2.8bn Subject to Wood Group shareholder approval and other regulatory approvals Class 1 circular to be circulated shortly…
Continuing Group A world leading engineering business with strong market positions in upstream, subsea and pipelines The worlds leading production facilities support provider The worlds leading independent industrial gas turbine…
2011 outlook Engineering improving market order book supports growth in 2011 improved EBITA margin Production Facilities long term growth PF revenue to be broadly flat; annualised PSN revenue of over 1.2bn benefit of greater…
Footnotes 1. EBITA represents operating profit of 288.2m (2009: 298.5m) for 2010 before adjusting for exceptional items of 27.6m (35.8m), and amortisation of 29.0m (2009: 24.1m). This financial term is provided as it is a key unit of…
Appendix
Wood Group PSN - wide geographic coverage + Production Facilities Production Facilities Key countries UK North Sea 10 47%10 29% 40% North America 18% 24% 20% US offshore, US onshore, Canada Latin America 12% - 7% Brazil,…
PSN extends and deepens Wood Groups strong long term customer relationships Top 10 customers Production Facilities 24
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