Shares in oilfield support services giant Wood Group dropped after the firm admitted international performance for the year ended 31 December will be below expectations.
The fall comes as a result of losses on two Wood Group Production Facilities contracts, which the firm was keen to emphasise have been targeted for an improved performance in 2012.
Overall, the group expects to deliver good growth, with performance for the year in line with expectations.
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
"Conditions in oil & gas markets remain strong, with commodity prices at favourable levels for our customers. We are not witnessing any material change in customer behaviour as a consequence of volatility in financial markets, and we remain confident in the longer term prospects for oil & gas and gas fired power generation," the group said in a statement.
In Engineering, the firm continued to see good growth and said its order book remains strong.
In upstream, a number of contracts are active, including the Chevron Jack/St Malo, Hess Tioga and Noble Alen projects, in addition to Anadarko Lucius awarded in the second half.
Subsea & Pipelines continues to perform well while in downstream, the market remains soft and performance has remained in line with the previous year.
In Wood Group PSN, integration is progressing well with demand for activities remaining strong in the North Sea.
In GTS, Maintenance activities are expected to deliver an improved second half performance, despite relatively weak conditions in the power sector, while Power Solutions has made good progress on the Dorad and GWF contracts, resulting in a "meaningful" second half profit contribution, the firm added.
The share price dropped 3.14% to 616p by 08:15.
NR
-
M&S and Tesco among those warning of a £7bn Budget hitSeventy-nine UK retailers have written to Chancellor Rachel Reeves about possible price rises and job cuts - here is what it means
-
How much does it cost to move home under the Labour government?Home-moving costs are rising and could get more expensive once stamp duty thresholds drop in April 2025
