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John Wood Group reported a fall in profit as revenue was hurt by weakness in its projects business as the company shifted focus away from large-scale fixed price work.
For the financial year ended 31 December 2021, operating profit before exceptionals fell to a range of around $195 million to $205 million compared with $214 million last year as revenue declined 14%.
Projects saw a decline in revenue of around 35% over the year, reflecting 'the completion of larger engineering, procurement and construction contracts, our focus on de-risking our contract portfolio by moving away from large-scale fixed price work and new work being limited to smaller scopes such as early-stage work,' the company said.
Looking ahead, the company said it expected activity levels to improve in 2022 across its business.
'We have seen good momentum in order in-take in the fourth quarter of 2021, including an improvement in projects. We expect our order book at 31 December 2021 to be significantly higher than 31 December 2020 with growth in all business units,' it added.