Wood Says Mideast Contract Wins Exceeded $1B in 2025

John Wood Group PLC said Tuesday it has won more than $1 billion in contracts across the Middle East this year, exceeding last year’s company record.

“Wood has seen a near 20 percent increase in awards compared to 2024, with wins across United Arab Emirates, Iraq, Kingdom of Saudi Arabia, Bahrain, Kuwait, Oman and Qatar”, the Aberdeen, Scotland-based engineering and consulting company said in an online statement.

Ellis Renforth, president of operations for Europe, Middle East and Africa at Wood, said, “This year we’ve delivered critical solutions across the Middle East to improve asset reliability and cut emissions”.

“In 2026, we’ll build on this success by expanding our operations and maintenance services in the region. Our focus is on proven approaches to asset management and modifications that improve efficiency and reduce downtime – practical steps that strengthen energy security and decarbonization”, Renforth added.

Stuart Turl, Wood vice president for Middle East consulting, said, “Decarbonization and digitalization remain central to how we support clients in the Middle East. This year, we launched our specialist Middle East Energy Transition and Digital & AI Hubs to further support clients in accelerating emissions reduction while unlocking efficiencies through AI-driven solutions”.

“This in-region advisory enables practical pathways to carbon reduction while supporting national visions for a sustainable energy future. Delivery has already spanned initiatives such as minerals procurement, hydrogen production facilities and carbon capture and storage infrastructure”, Turl said.

On May 27 Wood said it had secured a contract from TA’ZIZ, a joint venture of Abu Dhabi National Oil Co (ADNOC) PJSC, TA’ZIZ to provide project management consultancy for the development of the UAE’s first methanol production facility, to rise in Al Ruwais Industrial City.

“Construction will be completed by 2028 and the plant will be one of the largest methanol plants in the world, producing 1.8 million tonnes per year. It will be powered using the latest clean energy technology”, Wood noted.

On June 10 Wood said it had bagged a $2.8 billion contract from ADNOC to deliver engineering, procurement and construction management for the natural gas processing facilities at the Habshan facility in the UAE.

“Wood’s scope includes the delivery of substantial upgrades and debottlenecking solutions to the existing Habshan and Habshan 5 gas processing mega-complexes and pipelines, including brownfield modifications and the installation of new facilities”, Wood said then.

“The Rich Gas Development project will increase efficiency and modernize the facility to support increased gas output from ADNOC’s upstream expansion. Habshan is one of the largest gas process complexes in the world”.

A team of over 500 Wood specialists based in Abu Dhabi will deliver the job with support from the company’s global engineering hubs, it said. Wood expects to complete its scope by 2027.

On November 19 Wood said it has been tapped for project management and engineering services for Iraq’s West Qurna 1 oilfield, operated by China National Petroleum Corp. Nearly 200 Wood employees based in Iraq and the UAE would accomplish the contract, Wood said.

Wood continued to bag contracts in the Middle East even as it works out a lifesaving takeover deal with Sidara.

Wood previously acknowledged it had not had a sustainable free cash flow since 2017 due to regulatory fines, loss-making contracts, restructuring charges and litigation payments.

Earlier this year the United Kingdom Financial Conduct Authority launched a probe into its accounting practices and the London Stock Exchange suspended its stock for failure to meet an April deadline to report audited accounts.

According to its latest financial and operational report, published October 30, Wood logged $2.42 billion in revenue for the first half of 2025, down 13.3 percent from the first six months of 2024. It blamed the decline on “some delays in key client programs in Projects and Operations” and “lower pass-through activity in Projects.

Moreover, trading was impacted by “uncertainty around Wood’s financial position which led to some delays in progressing bids and starting secured work”.

Its order book stood at $6.47 billion at the end of H1, up 5.9 percent year-on-year driven by its Operations segment.

In its Consulting segment, which provides technical consulting, digital consulting and energy asset development, H1 revenue fell 4.6 percent year-over-year to $286 million. Offsetting growth in digital consulting was a ” weakness across technical consulting given ongoing client hesitancy around the macro backdrop for investment, and some impact from our financial position on client procurement processes”, Wood said.

Its Investment Services segment, which manages legacy activities and Wood’s turbines joint ventures, saw a 13.3 percent year-on-year increase in H1 revenue to $131 million thanks to higher activity. Segment order book increased 52.1 percent year-on-year to $510 million.

Wood’s Projects segment, which provides engineering design, project management and construction management across energy and materials markets, recorded a 14.8 percent year-on-year fall in H1 revenue “with reduced pass-through activity representing around a third of the decline”.

Segment order book totaled $1.77 billion at the end of H1, down 10.4 percent year-on-year “due the timing of awards in the period and reflects a revised view on inclusion of pass-through activity in our order book”, Wood said.

Its Operations segment, which provides asset optimization and encompasses decarbonization, maintenance, modifications, brownfield engineering, asset management and decommissioning, registered $1.12 billion in H1 revenue. That was up 16.4 percent from the first six months of 2024 despite “lower pass-through activity as one major contract came to an end”, Wood said.

“Revenue was also impacted by a slower-than-expected ramp up of work awarded in 2024, lower activity levels in the Americas commissioning business and Asia-Pacific, and the impact of a major contract in the Middle East concluding in 2024”.

Operations order book at the end of H1 was $3.8 billion, up 13.6 percent year-on-year “due to some significant work awarded in the period, both renewals and new wins”.

“We continue to benefit from stable to strong activity levels driven by the continued demand for energy and the importance placed on energy security”, Wood said. “While trading in the period was impacted by delays in work being awarded and programs starting, we saw a significant increase in our order book across all regions”.

Adjusted cash from operations for H1 stood at -$171.6 million. Free cash flow was -$403.5 million.

Wood ended H1 with $495.9 million in cash and cash equivalents. Current assets totaled $1.92 billion. Current liabilities stood at $3.3 billion including $1.57 billion in borrowings.

Wood said, “The first half of 2025 was a period of significant uncertainty related to the independent review [of January-June 2024 results], the delay in publication of our 2024 audited accounts and weakening of our financial position. The trading in the first half of this year, and our outlook, are reflective of these pressures”.

“Crucially, despite these challenges, clients have continued to award us significant work with an order book at 30 June 2025 of $6.5 billion. The ability to turn this order book into revenue was restricted in the period by the macro backdrop, including delays to some key client programs and the uncertainty over Wood’s financial position.

“The publication of our 2024 audited accounts and HY25 results represent an important step towards delivery of the Sidara offer which, if approved by shareholders, will lead to a significant injection of capital to the Group and increased certainty for Wood, which in turn should help us pursue further client opportunities into the new year”.

To contact the author, email jov.onsat@rigzone.com