Wood Group 2012 Interim Results Energy Supporting Energy August 2012
Agenda Summary Management team Markets and strategy Financial review Divisional review Key takeaways Presenters Allister Langlands (CEO) Alan Semple (CFO) Bob Keiller (Chief Executive Wood Group PSN) 2
Summary Good growth across all three divisions in H1 and confident of achieving full year performance in line with expectations Revenue from continuing operations up 36% to 3.3bn. EBITA from continuing operations up 53% to 205m…
Senior management team (from 1 November 2012) Wood Group Allister Langlands Chairman Bob Keiller CEO Alan Semple CFO Engineering Wood Group PSN Wood Group GTS Mike Straughen Chief Executive Robin Watson Chief Executive Mark…
Markets and strategy Overall, conditions in energy markets remain favourable Uncertainty about global economic prospects has had no discernible impact on activity or current outlook Our strategy continues to be that of pursuing…
Financial results 1H 2012 1H 2011 Change m m % Revenue from continuing operations 3,346 2,466 36% EBITA from continuing operations 205 134 53% Amortisation (39) (27) 45% Net finance expense (6) (4) 42% Profit from continuing…
Pro forma financial results H1 2012 H1 2011 m m Revenue EBITA Margin Revenue EBITA Margin Engineering 872 104 11.9% 688 73 10.5% Wood Group PSN 1,774 90 5.1% 1,660 87 5.2% Wood Group GTS 700 38 5.4% 481 23 4.7% Central costs…
Tax 1H 2012 1H 2011 m m Profit from continuing operations before tax 160 103 Tax charge per financial statements 46 31 Effective tax rate on continuing operations 29.0% 30.0% Expect typical effective tax rate going forward to…
Exceptional items 1H 2012 1H 2011 m m Gain on disposals 21 2,267 Provision for doubtful debts (9) (23) Acquisition and integration costs - (23) Total exceptional items 12 2,221 Tax (2) (67) Total exceptional items after tax…
Cash flow 1H 2012 1H 2011 m m EBITA 203 192 Depreciation & other non cash items 24 26 Cash generated pre working capital 227 218 Working capital movements (173) (165) Cash generated from operations 54 53 Acquisitions & deferred…
Working capital Closing net working capital / last six months sales1 24% 22% 20% 18% 16% 14% 12% 10% Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Working capital outflow of 173m in H1, reflecting m Increase in…
Balance sheet June Dec June 2012 2011 2011 m m m Non current assets 1,881 1,874 1,957 Net current assets 564 345 332 Long term liabilities (263) (240) (207) Net operating assets 2,182 1,979 2,082 Net (borrowings)/cash (107) (4)…
Wood Group PSN H1 2012 H1 2011 % m m change Revenue 1,774 1,297 37% Pro forma Revenue 1,774 1,660 7% EBITA 90 65 38% Pro forma EBITA 90 87 3% Margin 5.1% 5.0% 0.1pts Pro forma Margin 5.1% 5.2% (0.1% pts) Revenue up 37% and…
Wood Group PSN PDO Oman - increased activity on our significant long term contract - client recognition of safety record and improved management of shutdown activity - recognised losses of just over 10m in H1; anticipate full…
Wood Group PSN North Sea (c40% of revenue) - strong performance and confidence in medium term market outlook - active on longer term contracts with BP, Shell, Talisman and TAQA. Recently awarded contract with Premier Americas (c30%…
Engineering H1 2012 H1 2011 % change m m Revenue 872 688 27% EBITA 104 73 44% Margin 11.9% 10.5% 1.4pts Revenue growth of 27% reflecting increased activity in upstream and subsea & pipelines EBITA up by 44% reflecting…
Engineering Upstream (c40% of revenue) working on offshore developments in Gulf of Mexico; active in Canada important international wins; Ichthys and Mafumeira Sul Subsea & pipelines (c40% of revenue) particularly active in North…
Wood Group GTS H1 2012 H1 2011 % change m m Revenue 700 481 46% EBITA 38 23 69% Margin 5.4% 4.7% 0.7pts Revenue up 46% and EBITA up 69% Maintenance revenue and EBITA up around 10% led by oil and gas activities Power…
Wood Group GTS Maintenance - continued strength in oil & gas - new contracts in power Power Solutions - Dorad on track, completion in H2 2013 - GWF experiencing some delay, completion in H2 Looking ahead - signs of improvement…
Key takeaways Good growth across all three divisions in H1 and confident of achieving full year performance in line with expectations Board changes give the Group a strong management team to further develop leading positions across…
Footnotes 1. Continuing operations revenue and EBITA figures include the results of PSN since acquisition in April 2011, and exclude the results of Well Support and the Wood Group GTS Aero engine overhaul business, disposed of in April…
Appendix 22
Amortisation 1H 2012 1H 2011 m m Amortisation on software 12 10 Amortisation of intangible assets arising on acquisition - PSN 23 12 - Other 4 5 39 27 Full year amortisation anticipated to be around 80m 23
Interest 1H 2012 1H 2011 m m Interest on debt 5 5 Other fees and charges 2 2 Total finance charge from continuing operations 7 7 Finance income (1) (3) Net finance expense from continuing operations1 6 4 24 1 pre…
Share numbers 2012 2012 Closing Weighted average Ordinary shares 371 371 Shares held by employee trusts (10) (12) Basic shares for EPS purposes 361 359 Effect of dilutive shares 12 12 Fully diluted shares for EPS purposes 373…
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