Wood Group, the FTSE 100 energy services giant, has reported group progress in the year-to-date and said at its annual general meeting that it is confident of achieving full year performance in line with expectations.
However, Wood Group GTS is currently behind plan, although this is anticipated to be recovered over the course of the year.
The group explained the Maintenance business was affected by delays to engine overhauls, including secured work in its aero derivative joint ventures, which are anticipated to be executed in the balance of the year.
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
In Power Solutions, the forecast outcome on Dorad was affected by increased costs and this is reflected in the year to date position. However, it has provisional agreement on a number of change orders, which it believes should benefit the full year position.
The NRG and Pasadena contracts are progressing according to plan and it continues to pursue a number of further opportunities. Overall, the division is expected to deliver full year EBITA in line with expectations.
Meanwhile, both Wood Group Engineering and Wood Group PSN are performing well, with the former on track to deliver earnings before interest, tax and amortisation (EBITA) growth of around 15%.
"In Upstream, we have recently been awarded the detailed engineering scope on Anadarko Heidelberg in the Gulf of Mexico and remain active on a range of other projects including Ichthys and Mafumeira Sul," Chairman Allister Langlands said.
"In Subsea and Pipelines, we are seeing strong activity across our principal hubs in the UK, US and Asia Pacific."
Wood Group PSN is performing well in the North Sea, where the company has recently secured important extensions to major contracts with Total and CNR.
"In the Americas, our activities in the US shale regions are performing well, including good contributions from the acquisitions made in 2012," Langlands continued.
"In International markets, we have recently secured extensions to contracts in Chad and Australia. In Oman, underlying losses are reducing and we remain confident of achieving a significant improvement in financial performance for the year."
The Chairman added: "Overall, our balance sheet remains strong and we remain confident of achieving full year performance in line with expectations."
The share price dipped 0.8% to 820p by 08:30 Wednesday.
NR
