Wood Group sticks with guidance of 20% fall

Wood Group chief executive Robin Watson

Aberdeen-based oil and gas services giant Wood Group said it was sticking to the guidance of full year 2016 earnings before interest, taxes and amortization (EBITA) of around 20% down on 2015 that it gave in May.

“The current environment remains challenging,” said Wood in a trading update.

“Overall the outlook for the full year has not changed and there is no change to EBITA guidance of around 20% down on 2015 as given in May.”

Wood Group said that for its PSN business the North Sea operating environment remained very challenging but it had renewed contracts with Chevron, Enquest, Nexen, Shell, Talisman, Taqa and Total.

“Our recent acquisition of some of the assets of Enterprise Engineering Services Ltd will assist us in working towards further in house and customer efficiencies as we expand our capabilities,” said Wood.

It said that performance in PSN’s international business had been robust, with work starting on its recently announced contracts in Iraq and contract for BP in Baku.

It continued to see the Middle East as an area of future growth.

 

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