Wood Group has warned that its earnings and revenues for the year will be lower than previously expected, as the lingering effects of the pandemic have deferred more projects than anticipated into 2022.
The Aberdeen-based engineering and consulting group said on Friday that full-year revenues would be about $6.4bn, down from the previously expected range of $6.6bn to $6.8bn.
Margins at the level of adjusted earnings before interest, tax, amortisation and depreciation are now projected to fall between 8.5 and 8.9 per cent, down from 8.7 to 8.9 per cent.
“While we are seeing robust activity in consulting and operations, the rate of recovery in projects has been slower than anticipated largely due to the deferral of activity and awards into 2022,” the company said in a statement.
“A growing order book and exposure to both government stimulus for infrastructure development and the drive for sustainability and climate resilience, most notably in North America and the UK, positions the business well for future growth,” it added.
The company also announced a strategic review of its built environment consulting business.
“The scope of the review will consider a range of options to best unlock value from this part of the business for shareholders that Wood believes is not currently being recognised in its market capitalisation,” the company said.
The business under review has 7,000 employees, mostly in the US and Canada, and is expected to account for $1.3bn of gross revenue this year.