Wood Group maintains year-end profits forecast at $465m despite N. Sea downturn

Wood Group logoAberdeen-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.”

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed