Wood to sell Ethos Energy stake as group revenue hits £4.7billion

Ken Gilmartin (Wood)

ABERDEEN-headquartered Wood Group has confirmed that its revenues rose to hit $6billion (£4.7billion) in 2023.

And there is another $6.1billion of work already in the pipeline, according to a trading update released this morning.

Subscribe to our daily newsletter

Why? Free to subscribe, no paywall, daily business news digest.

The firm also confirmed today that it has started the process of selling the 51% stake it holds in Aberdeen-based turbine services business Ethos Energy.

Ken Gilmartin, Wood’s chief executive officer, revealed that 40% of the group’s bidding pipeline is now from sustainable solutions, including work in hydrogen, carbon capture & storage, electrification and electricity transmission & distribution, LNG, waste to energy.

And he said that the near-10% growth in the firm’s revenues demonstrated that its strategy was “delivering”.

“We are now one year into our strategic growth journey and our results continue to show clear progress,” he said.

“We have delivered strong revenue and EBITDA growth, improved our underlying cash generation, grown our order book, and continue to see an acceleration in the proportion of sustainable solutions within our pipeline. 

“We are confident that our actions, business model and strategy are delivering and look forward to giving a further update in March.”

The projects arm of the business enjoyed 10% growth to $2.5billion during 2023, thanks to “very strong growth” across the oil, gas and chemicals sectors.

Its operations also saw like-for-like revenue growth of around 7% to c$2.5 billion, due to higher activity levels across the business, particularly in Europe and the Middle East.

The fourth quarter also saw Wood secure a number of major contract wins, including: 

  • Detailed engineering design for Woodside’s Trion project, the deepest semi-submersible facility in the Gulf of Mexico
  • Brownfield engineering contract in Europe, helping to produce active pharmaceutical ingredients for medicines
  • Supporting one of the world’s largest offshore clean power projects in Germany
  • Appointed owners’ engineer for world-leading green hydrogen project in Spain
  • Delivering engineering, procurement, construction and commissioning services on a cost reimbursable basis for brownfield modifications for bp’s Murlach development in the North Sea
  • Two-year operations contract extension with Equinor in the Mariner field in the North Sea

FY23 adjusted EBITDA slightly ahead of guidance at $420 million to $425 million, up 9%.

You can read the full trading update here.

The latest stories