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Trading statements

Wood Group says 'more cautious' on FY outlook

29 June 2017 07:20

Wood Group said its H1 performance is down on 2016 and weaker than anticipated, as it remains more cautious on its FY outlook but anticipates a stronger second half.

"In the first half we have seen continued challenges in our core oil & gas market with modest recovery only in certain areas," the company said.

"Robust activity in the West including improved performance in offshore greenfield project engineering and commissioning is being more than offset by weaker activity in the East, where we have seen a further reduction in projects & modifications work, particularly in the North Sea.

"The impact of the tougher pricing environment in 2016, partially offset by the enduring benefit of structural cost reductions achieved in the last two years, will result in a reduction in first half margin as expected."

"First half performance is down on 2016 and weaker than anticipated. We are more cautious on the full year outlook but anticipate a stronger second half."

Separately, Wood Group said Husky Energy had awarded it a multi-million dollar contract to complete detailed engineering for the topsides of White Rose, a concrete gravity-based structure wellhead platform planned for offshore eastern Canada.

The project included procurement services and engineering design work.

The Wood Group team has identified several project innovations to significantly reduce engineering person-hours and realize other savings at White Rose.

Story provided by StockMarketWire.com

Related Company: WG.

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