Wood Group earnings outlook remains 'broadly' in line with consensus
Scottish energy services company John Wood Group confirmed on Thursday that its full-year underlying earnings outlook remained broadly in line with consensus, despite the impact of a slowing macro environment.
Wood Group said it had benefited from proactive cost cutting and combining its specialist technical solutions and environment and infrastructure solutions divisions.
Expectations on cashflow were broadly unchanged and the $305m sale of the group's nuclear business was "progressing as expected".
The FTSE 250-listed firm said its Asset Solutions EAAA business continued to perform strongly, albeit with reduced low margin procurement activity.
The Americas unit benefited from increased downstream and chemicals activity - although shale activity had slowed. Project challenges in process and energy were being partly offset by the benefit of the successful close out on certain contracts.
Chief executive Robin Watson said: "We are looking forward to sharing our strategic plans to create a higher margin project management, operations and consulting business. We are confident Wood is well-positioned to unlock growth opportunities from the emerging trends in our energy and built environment markets."
As of 0905 BST, Wood Group shares were up 3.01% to 365.80p.