International energy service provider Wood Group said yesterday that its performance so far this year remained in line with expectations.
The Aberdeen-based company employs more than 28,000 people in 46 countries in three businesses: engineering and production facilities; well support; and gas-turbine services.
Wood chairman Sir Ian Wood said in May that it was likely that the oil and gas industry’s exploration and production spending would reduce by about 10-15% in 2009.
Wood said yesterday: “Although the oil price has strengthened over recent weeks, market conditions remain broadly similar to those outlined in our interim management statement issued on May 13 and, consistent with this, performance in the year to date remains in line with expectations.
“We believe the longer-term market fundamentals for our services and products remain strong and we are continuing to extend our services and broaden our international presence to ensure we are well positioned to resume good growth as the energy market recovers.”
Wood finance director Alan Semple said that the recent ending of a project in Venezuela would have no impact on trading profits.
The company had a 49.5% interest in the Simco consortium, which was managing water injection for state oil company PDVSA.
The 16-year deal was worth about £500million and still had six years to run.
The contract has now been taken over by PDVSA following the consortium submitting a notice of default as a result of non-payment and other contractual disputes.
Mr Semple added that Wood was in a very strong position to recover the money due.
The Aberdeen company still has other operations in the South American country.
Wood’s results for the six months to June 30 will be announced on Wednesday, August 26.
The chief executive of international energy service company Hunting said yesterday that trading for the remainder of 2009 could be challenging.
Dennis Proctor said: “Given global financial developments combined with the significant decline in commodity prices, overall trading in the first half of 2009 has been satisfactory.
“Should current market conditions and commodity prices prevail, trading throughout the remainder of the year will be challenging, however, we remain confident that the long-term fundamentals are solid and that any recovery in global economies will improve demand for oil and natural gas. With further acquisitions and completed capital projects, the company will be in a strong position to capitalise on the recovery and return to the excellent earnings previously experienced.”
About 280 people work for Hunting in the north-east: at Portlethen, Aberdeen and Montrose.