Wood Group expects 2011 to be in line

30th Jun 2011 07:09

Oilfield services firm Wood Group said on Thursday that it has seen good growth in the year to date and expects full-year numbers to be in line with expectations.The company - which works in 50 countries and has more than 34,000 employees - said that trading in its Engineering division and a strong order book continue to support its expectations of good EBITA (earnings before interest, tax and amortisation) growth in 2011. Upstream volumes have risen but project deferrals continue in some areas, the group explained. "Subsea and pipeline continues to perform strongly and the downstream, process and industrial markets remain soft."Wood Group PSN, the provider of hook up & commissioning, operations & maintenance and construction etc., has seen "reasonable activity levels" in the North Sea and strong demand for onshore services in the US. However, delayed start-ups in certain Australian contracts and a contract in Oman has affected trading in those regions.The oil and gas maintenance performance in the Gas Turbines Services division is being affected by "test cell downtime" and overhaul delays, but the group sees a strong recovery in EBITA for the division as a whole, with profits weighted to the second half."Overall, the group continues to anticipate full year performance in line with expectations. The long term fundamentals for oil & gas and gas fired power generation remain strong and we believe the Group is well positioned to deliver good longer term growth," the firm said.BC