Wood Posts Profit on Higher Margins in 2019

UK-based services provider Wood has swung back to profit in 2019 despite a drop in revenues, the company reported on March 10.

The Aberdeen-headquartered firm posted an income of $73mn for the year, versus a $8mn loss in 2018. The reversal was thanks to a 84% growth in operating profit to $303mn, which offset higher interest rates. Wood said it benefited from a significant reduction in exceptional items, from $183mn to $127mn. 

 Revenues were down 1.2% at $9.89bn, but Wood said this still reflected "robust activity" across the energy and built environment markets. Adjusted core earnings (Ebitda) grew 23.2% to $855mn, on higher margins.

"Our strategy has driven decisive action to align Wood with the significant growth opportunities in energy transition and sustainable infrastructure and we made good progress on portfolio optimisation and the repositioning of our consulting, project and operations service offering in 2019," CEO Robin Watson said in a statement.

Wood is working to streamline its operating model, having sold off its nuclear and industrial services businesses for $430mn in the first quarter. 

"We are confident that from this foundation we are building a differentiated, premium, higher margin business, supported by a continued focus on margin improvement, execution excellence and portfolio optimisation," Watson said.