The shares of the UK-based John Wood Group PLC (GB:WG) rallied over 5% today after the company released a favourable trading update for the full year 2023. The company reported its performance in line with its expectations. The company’s EBITDA for 2023 is now projected in the range of $420 million to $425 million, indicating a 9% increase.
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Wood Group is an engineering firm offering solutions across three business segments: Consulting, Projects, and Operations.
Robust Order Book
Wood Group’s order book grew 4% to $6.1 billion on a comparable basis, further solidifying the company’s outlook for 2024. The company’s major contract wins during Q4 2023 include the extension of the contract with Equinor in the North Sea, German offshore wind farms, and Woodside’s Trion project.
Additionally, Wood Group reported a 9% increase in its FY23 revenue to $6 billion, driven by substantial growth across all business units. Among its segments, Consulting saw the highest revenue growth of 13%.
The company will publish its FY23 results on March 26, 2024.
Is John Wood Group a Good Buy?
John Wood shares have rebounded from the most substantial single-day decline in May 2023, when the U.S.-based private equity firm Apollo Global Management opted not to proceed with the company’s acquisition.
According to TipRanks consensus, WG stock has received a Moderate Buy rating based on two Buy and two Hold recommendations. The Wood Group share price target is 205.50p, which is 28% above the current level.
It is important to note that these ratings were last updated and it is expected that analysts will make positive adjustments to them in response to the latest update.
