Energy services giant Wood Group has said that it expects to deliver good growth this year, with overall conditions in energy markets remaining 'favourable'.
"Overall, performance for 2012 is anticipated to be in line with expectations," Wood Group said.
"We anticipate further good growth in 2013 and remain confident in the longer term prospects for the group's market leading services in oil & gas and gas fired power generation markets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company expects its Engineering division to report over 30% growth in 2012 earnings before interest, tax and amortisation (EBITA).
In upstream, while the group is making progress in its projects in Australia and Angola and remains active in projects in the Gulf of Mexico, it did admit that it expects "some reduction in activity" in the Canadian oil sands market in 2013.
In subsea and pipelines, the company said that it continues to see good activity levels in onshore pipelines in North America. However, in downstream, Wood Group said that the market outlook remains "subdued", though it has seen some improvement in the second half.
Elsewhere, Wood Group PSN, which provides brownfield services to the oil and gas industry, has been boosted by a strong performance in the North Sea and in North America.
Meanwhile, turbo-machinery division Wood Group GTS has benefitted from the contribution from its oil and gas related acitivities
-
Is investing in AIM still worth it after IHT clampdown?HMRC expects to rake in £110 million a year from upcoming inheritance tax changes on AIM shares. The tax relief will be cut from April 2026, meaning you could find yourself paying 20% in inheritance tax.
-
AI in finance: how is technology changing financial advice?There are huge opportunities for AI to improve and democratise financial services, particularly financial advice. But is the regulatory environment ready for AI to become mainstream in finance?
