Wood Group still stuttering in Oman

Wood Group, the energy services firm, has seen revenues soar in the first half of 2012 as it seeks to stem losses from its troublesome Oman contract.

Turnover for the six months to the end of June was $3.346bn, up 36% on the same period of 2011.

Profits before tax for the half year were $160m, a rise of 56% on the prior year, while the interim dividend has been boosted 46% to 5.7 cents per share.

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Although Wood Group has had a very impressive 2012 so far, with the shares rising 28%, its Wood Group PSN unit has been hit by a loss-making contract in Oman.

PSN maintains oil and gas production facilities. It now expects to lose between $15m and $20m in Oman by the year's end, having shipped $10m in the first half alone. Overall revenue for the half year was $1.774bn, up 37% on 2012.

Wood Group's engineering division is doing better, with contract wins for the Ichthys and Mafumeira Sul projects, it's seen revenues climb 26.7% to $872.2m.

The turbine services division, Wood Group GTS, is seeing growth in maintenance revenues, which has pushed total revenues up 45.7% to $700m. Earnings before interest, tax depreciation and amortisation (EBITDA) at GTS were up a whopping 69.3% at $38.1m.

Chairman Sir Ian Wood and Chief Executive Allister Langlands commented: "In the first half the Group has delivered growth across all three divisions, and we are confident of achieving full year performance in line with expectations."

By 09:58, Wood Group shares had fallen 1.44%.

BS