Wood Group reiterates guidance, but trading mixed

12th Dec 2013 07:14

- Trading in line with expectations- EBITA to grow 10-15 per cent this year, as expected- Trading mixed across PSN, Engineering, GTS divisionsEnergy services firm Wood Group said it has delivered 'good growth' this year, despite trading remaining mixed across its three main divisions.The company said that results for the 12 months ending December 31st are expected to be in line with expectations. It also predicts growth overall next year due to a mix of spending and contribution from completed acquisition, with trading in Wood Group PSN offsetting a reduction in Wood Group Engineering.Wood Group PSN, the provider of brownfield services to the oil and gas industry, is said to be performing well with growth led by its US onshore shale related business.The North Sea market is "strong" with recent contract renewals providing good revenue visibility for the future. The company also hailed its recently increased exposure to the US shale market. In international markets, however, Wood Group PSN's performance continues to be held back by its contract in Oman. The Engineering division is on track to hit its guidance for 10-15% growth in 2013 earnings before interest, tax and amortisation (EBITA). However, it warned that EBITA would fall by 15% next year after the completion of major projects and the deterioration in some markets, mainly related to project delays offshore together with upstream weakness in Canada.The firm's other division, Wood Group GTS, which provides maintenance and repair services for turbines, is expected to see EBITA fall in 2013 due to lower profits in Power Solutions and some recent deferrals in Maintenance.BC