Wood Group Continues To Expect Higher EBITA For 2014 - Update

(RTTNews) - Energy services company John Wood Group Plc (WDGJF.PK, WG.L) Thursday said it continues to anticipate full-year 2014 EBITA to be in line with view, and higher than that of 2013.

For fiscal year 2013, Wood Group had posted EBITA of $533 million, up 16 percent from 2012.

For 2014, the company projects a change to the mix of EBITA with an increase in WGPSN Production Services being offset by a reduction in Turbine Activities.

In a pre-close trading update for the six months ended June 30, 2014, the company noted that year-to-date performance in Wood Group PSN -Production Services was ahead of expectations. Growth in the period was driven by performance in the Americas, mainly in the US shale regions.

Wood Group has commenced work for ExxonMobil in Papua New Guinea and expect activity to increase in the second half of the year.

In Wood Group Engineering, performance was in line with expectations, while it was behind expectations in Turbine Activities.

According to the company, in Wood Group Engineering Upstream, market activity continues to be impacted by client focus on capital efficiency. Good activity in Europe, the Middle East, Africa and the Caspian contributed to growth in subsea business.

Downstream was benefited from brownfield work in US refining and some greenfield activity in the chemicals market, the firm said.

In Turbine Activities, financial performance in Joint Ventures was behind plan, including impact of deferrals as well as slower activity in certain areas. Turbine Activities represent three joint ventures: Rolls Wood Group, TransCanada Turbines and EthosEnergy, the recently completed joint venture with Siemens, as well as the Dorad contract.

The company is scheduled to release its first-half results on August 19.

Separately, Wood Group confirmed that Mike Straughen, Group Director HSSE, would step down from the board on August 31, 2014.

WG.L is currently trading at 794 pence, down 3.5 pence or 0.44 percent.