Wood Group today reported its financial performance for the year was already exceeding expectations.
In its interim management statement, the group said: “Performance for the year to date is slightly ahead of expectations in Wood Group Engineering and Wood Group PSN – Production Services. In our Turbine Joint Ventures, financial performance has been adversely impacted by delays on the Dorad contract, but this is expected to be largely recovered during the balance of the year.
“The group remains in a strong financial position. Market conditions remain broadly consistent with those at the time of the preliminary results announcement in February, with a continuing focus on customer capital efficiency. Overall, our trading outlook for the full year is unchanged and we continue to expect EBITA to be up in 2014, with growth in Wood Group PSN offsetting a reduction in Wood Group Engineering.”
The group highlighted a flurry of contract renewals as a contributing factor to its healthy performance.
It said: “In the North Sea demand remains strong and we are benefiting from significant contract renewals secured in 2013.”
The statement comes just one week after Wood Group PSN announced it would cut contractor rates by 10%.
At the time the firm credited cost and resourcing challenges affecting the North Sea’s oil and gas sector for the reduction.
A full trading update for the first half of the year will be delivered in June.
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