Wood Group performance ‘weaker than anticipated’

Aberdeen-based oil and gas services giant Wood Group — currently in the process of buying rival firm Amec Foster Wheeler for about £2.2 billion — said on Wednesday its 2017 year to date performance was down on 2016.

In an annual general meeting statement, Wood Group said: “The oil & gas market has continued to present challenges and as expected, year to date performance is down on 2016.

“Improved activity levels in offshore greenfield project engineering and commissioning in the west, have been more than offset by weaker activity elsewhere including further reductions in North Sea projects & modifications work in the east.

“Our industrial services business has performed robustly and automation activity has increased.

“Overall, year to date performance has been weaker than anticipated.

“However, recent awards and renewals demonstrate good customer support and we are seeing the enduring benefit of structural cost reductions achieved in 2016.

“We anticipate stronger performance in the second half of the year and as a result, management’s expectations of full year trading performance are broadly unchanged.”

Wood Group said that subject to shareholder and regulatory approval, it currently expects the Amec Foster Wheeler transaction to close in the second half of 2017.