The new chief executive of Aberdeen-based engineering and consultancy group Wood said this morning that the business can help solve the global challenges of energy security, decarbonisation and energy transition.

Ken Gilmartin, who recently took over the top post from Robin Watson, was speaking as the company released its results for the first half of the year.

The boss said: "Since becoming CEO in July, I have been really encouraged to see the improving operational momentum across our business, including some great client wins.

"The strong order book gives me confidence for the future, but there is a lot more to do on cash generation and this is our top priority.

"We are developing an updated strategy for Wood that will draw on our core strengths, return us to growth and deliver sustainable free cash flow.

"We perform complex work in critical industries, and our outstanding technical expertise and strong long-term client relationships position us well for growth across targeted markets.

"We have the consulting and engineering capabilities to help the world solve the global challenges of energy security, decarbonisation and energy transition.

Sharing plans

"I look forward to sharing our plans at our capital markets day in November.

"In the meantime, we are focused on our culture and energising our people, performance excellence and strengthening our balance sheet through the completion of the sale of the built environment business, which we expect around the end of Q3."

Wood currently employs around 40,000 people in more than 60 countries.

it is selling its built environment consulting business to WSP Global for $1.81billion (£1.54billion).

The unit has over 100 offices, predominantly in North America, with others located in the UK and elsewhere in Europe.

Built environment consulting employs around 5,500 consultants and technicians.

Canadian company WSP is one of the world's leading engineering professional services firms, with 37,000 people based in more than 500 offices, across 40 countries

Order book ahead

Wood also said today its order book for continuing operations was ahead 4.7% year-on-year at $6.424billion (£5.47billion), while operating profits were flat at $30millon (£25.56million).

The firm reported strong growth in consulting (+16%) and projects (+24%), partially offset by a decline in operations (-6%).

Wood said it continue to de-risk its contract portfolio, with 80% of group revenue now from reimbursable work - with only around 3% from lump-sum turnkey contracts.

The company stated there had been multiple key contracts awarded in the half year across all three business units, including a 10-year strategic partnership with Chevron.

In addition, it reported contracts wins across energy transition and decarbonisation worth over $500million (£425million) so far in 2022.

As regards the outlook for 2022, Wood said it expects higher revenue across the group this year and an improved performance in the second half, helped by an improvement in turbines joint ventures.

The group's guidance for the full year, excluding built environment consulting, is revenue between $5.2billion (£4.47billion) and $5.5billion (£4.69billion) , and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) between $370million (£315million) and $400million (£340million).

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