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Aberdeen’s Wood Group delivered a large jump in profits and news of another big annual dividend for shareholders in its first half results.
The energy-service giant reported progress in all three of its operating divisions during the first six months of 2012, boosting profits from ongoing operations rise by 56% – excluding one-offs and tax – to £101.3million.
And in the last results to be posted under Sir Ian Wood’s chairmanship, Wood Group said it was raising the first half dividend by 46% to 3.6p.
Shareholders will see a 26% increase to 10.8p over the full year, which chief executive Allister Langlands said reflected strong earnings growth.
Wood Group has raised annual dividends by an annual average of 18% since its stock market flotation 10 years ago.
Mr Langlands, who takes over as chairman from Sir Ian on November 1, with Wood Group PSN chief executive Bob Keiller becoming group CEO, said the North Sea remained a key market.
He added: “Every year for the past 20 years I would have predicted the North Sea (revenue share) to fall but it is still a pretty active market and very important for us.”
North Sea work accounted for about 25% of total revenue of £2.12billion, up 36% year-on-year, during the first half.
Wood Group said conditions across its markets remained favourable, while uncertainty about global economic prospects was having “no discernible impact on activity or current outlook”.
Rising demand for oil and gas in developing parts of the world was keeping the industry buoyant, Mr Langlands added.
The company highlighted a strong first half performance for its Wood Group PSN subsidiary in the North Sea and North America.
Engineering and Wood Group GTS divisions also made progress.
Sir Ian said: “The group has delivered growth across all three divisions and we are confident of achieving full-year performance in line with expectations.
“Our strong management team is well set to further develop our leading positions across engineering, production facilities support and gas turbine services.”
Figures were held back by a problem contract in Oman which is expected to hit full year profits by up to £12.7million.
Wood Group’s global workforce grew to 10,100 in the period, from 8,000 in June 2011, both organically and through the acquisition of ISI Solutions in the second half of 2011.
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