Service Deal Signed Between Wood Group and SABIC

Published at 02:12PM - 18/08/16

Wood Group announced today it has been awarded a new service deal by SABIC to provide engineering design services in the UK.

Under the contract effective immediately, Wood Group will provide the services to the SABIC-operated Teesside complex located in Wilton.

“This contract, which extends our support of SABIC into the UK, demonstrates the strong relationship we have with this client based on our proven track record of excellence, quality and assurance in our technical service delivery,” Wood Group Chief Executive Officer Robin Watson, said.

Service Deal Signed Between Wood Group and SABIC

The contract will be delivered by Wood Group’s operations in Woking, the company explained in a statement.

This follows an existing cooperation between the two companies as Wood Group already supports SABIC operations in Saudi Arabia and the US.

Service Deal Signed Between Wood Group and SABIC
Wood Group CEO Robin Watson

“Our diverse and robust expertise and capabilities position us strongly to add value for clients in the petrochemical market, which represents a good long-term opportunity for Wood Group. We will leverage our knowledge of working with SABIC globally towards the successful, efficient and effective delivery of this new contract,” the CEO added.

Wood Group Posts Declining Results for H1-2016

Wood Group recently disclosed its financial results for the first half of the year with a 17% decline in revenue caused by “challenging conditions” in the oil and gas sector.

“Performance in the first half of 2016 reflects the balance of a challenging oil and gas market, our continued focus on utilisation and cost management and the benefits of our flexible, asset light model,” Watson said in a company statement.

The company foresees no changes by the end of the year, with a full-year EBITDA anticipated to be around 20% lower than in 2015, but predicts a modest recovery in the years to follow.

Wood Group was forced to cut 10% of its workforce in the first half of the year, due to less activity across its segments. However, it saw a higher margin “from legacy engineering projects and the continued focus on utilisation and drive for efficiency”.