Aberdeen-based oil services conglomerate Wood Group has maintained its year-end profits forecast of $465 million – despite ‘heavy going’ in the North Sea.
In its pre-close trading statement for the year to 31 Dec 2015, it said: “Our overall outlook for 2015 remains unchanged and we anticipate full year performance in line with previous guidance for EBITA of around $465 million.
“In the North Sea, volumes under longer term contracts have been impacted by the continued reduction in project and non-essential maintenance work.
“And more recently we have seen the impact of efficiency initiatives including changes in offshore work-shift rotation. These factors continue to contribute to headcount reductions.”
Wood anticipates a ‘prolonged’ crude oil price slump will continue to generate ‘challenging market conditions.”
Investec analyst Neil Morton commented: “Wood reported flat underlying margins at the halfway mark – a very creditable performance which has been helped by an aggressive cost-cutting programme.
“The market is nervous following Amec’s profit warning in early November, but Wood appears comfortable in its full-year guidance.”
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