Wood Group said yesterday it was on track to increase profits by more than 15% this year, thanks to worldwide growth across its divisions.
The Aberdeen energy-service giant said its engineering, PSN and GTS arms were all performing strongly as conditions in energy markets “remain favourable”.
It also said it was performing in line with market expectations, with analysts predicting annual earnings before interest, taxation and amortisation to increase to around £287million – up from £246.5million last year.
Wood Group said its engineering division’s subsea and pipelines business had been busy in recent months, especially in the North Sea, while its upstream operations included a number of projects in the Gulf of Mexico, Australia and Angola.
Although Wood Group PSN is still suffering the effects of a problem contract in Oman, which is expected to hit full-year profits by up to £12.7million, the group said the division was enjoying strong performance in the North Sea and North America.
The firm expects PSN to extend its reach into North America’s booming shale industry through its recent acquisition of US firm Mitchell’s Oil Field Services for an initial £83million, but the division is also winning work in Africa, the Caspian and Australia.
Wood Group said its GTS arm had won a string of contracts and more would follow in the coming months. It added: “Conditions in energy markets remain favourable. The group continues to deliver good growth and is confident of achieving full-year performance in line with expectations. We anticipate strong operating cash flow in the second half and our strong balance sheet provides a robust platform for growth.”
Wood Group employs more than 42,000 people across 50 countries.