WOOD Group said yesterday that its financial performance this year would not be materially impacted by the Gulf of Mexico (GoM) blowout and oil spill.
The Aberdeen-based international energy service company said only about 4% of its revenue, primarily in subsea and topside engineering, was related to new deepwater developments in the gulf.
The Obama administration in America wants a six-month ban on deepwater oil drilling in the GoM.
Wood Group said in a trading update on the six months to June 30 that its overall performance had been in line with expectations.
The company said engineering had performed as expected and bidding volume had improved, giving increased confidence in a return to growth in 2011.
It added: “In production facilities, activity is robust in the North Sea and we continue to see an increasing level of international opportunities. In well support, stronger activity in the US . . . and the good international performance, should result in earnings . . . for the year ahead of expectations.
“In gas-turbine services, we believe continuing maintenance deferrals by customers and lower activity in power solutions will contribute to a significant weighting to the second half. We believe that longer-term fundamentals for our services and products remain strong and we are continuing to extend our services and broaden our international presence.”
Wood Group already operates in 50 countries and employs more than 28,000 people.
Meanwhile, Wellstream, a UK-based designer and manufacturer of flexible risers and flowlines, said some uncertainty on its outlook had been introduced by recent events in the GoM.
It said that, consequently, the recovery predicted for the second half of 2010 looked to be slower than expected and might result in some profits being delayed until next year. Otherwise, Wellstream said it had continued to deliver good operational performance with first-half trading in line with its expectations and its order backlog increasing to £250million.
The company said the potential for significant growth in Brazil was clear and the fundamentals underpinning growth elsewhere across its markets were unchanged.
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