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Shares in John Wood (LON:WG.) climbed by 6.47% to 704.20p (at 13:00 BST) after the company’s revenues for the first half grew by 13%. EBITDA for the six months ended 30th June was also towards the upper end of prior guidance at $260 million.
Management said that they were confident that the company would perform more strongly during the second half of the year due to strong visibility on revenues and cost synergies. The order book currently stands at $10.6 billion comprising secured work and long-term agreements.
Chief Executive Robin Watson commented that: “Performance in the first half is at the upper end of our guidance range, reflecting continued momentum in trading and delivery of cost and revenue synergies. Integration is ahead of schedule and we are increasing our three year cost synergy target from at least $170m to at least $210m. Wood is delivering strong operational cashflows which underpin our deleveraging plan. We have good revenue visibility and remain confident of delivering a stronger second half. Our full year outlook is unchanged; we are seeing recovery in our core oil & gas market and good contract awards in broader industrial sectors. We remain on track to deliver growth in 2018 in line with previous guidance and market expectations.”