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Trading statements

Wood Group says YTD performance weaker than expected

10 May 2017 07:37

Wood Group says, overall, its year to date performance has been weaker than anticipated, but adds that management's expectations for the FY performance are broadly unchanged.

"The oil & gas market has continued to present challenges and as expected, year to date performance is down on 2016," the company said.

Improved activity levels in offshore greenfield project engineering and commissioning in the West, had been more than offset by weaker activity elsewhere including further reductions in North Sea Projects & Modifications work in the East.

Its Industrial Services business had performed robustly and Automation activity had increased.

"Overall, year to date performance has been weaker than anticipated," said Wood Group.

"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."

Separately, Wood Group said it had secured a new framework agreement to provide study engineering for North Caspian Operating Company's offshore and onshore asset portfolio in Kazakhstan.

The contract extends Wood Group's support of NCOC.

The company is currently delivering the concept and pre-FEED for the Kalamkas-Khazar co-development project.

It also held a multi-year engineering, procurement and construction contract in support of Kashagan operations, through its joint venture PSN KazStroy JSC.

Story provided by StockMarketWire.com

Related Company: WG.

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