(Adds background, context, share move)
Dec 14 Oilfield services company John Wood Group
Plc's CFO David Kemp said on Wednesday that the company
showed modest recovery in some of its oil and gas markets,
including U.S. shale and offshore oil exploration and drilling
* U.S. shale is the largest contributor to company's
operations and maintenance contracts in its west region, which
includes the Americas. John Wood Group said a steady rise in rig
count would help its assets in the Permian, Eagle Ford,
Marcellus, Utica and Bakken basins as the market recovers in
* The number of oil rigs operating in the United States rose
for a fifth straight week to 477, reaching the highest level
since January as a surge in crude prices continued to bring
equipment back into operation, weekly data from oil and gas
services company Baker Hughes showed.
* U.S. shale production is set to recover from a five-month
decline in January, the U.S. government said on Monday. Oil rose
to an 18-month high on Monday after OPEC and some of its rivals
reached their first deal since 2001 to jointly reduce output to
tackle global oversupply, though prices slipped late in the day.
* Wood Group, which counts BP Plc as one of its
customers, said in August that it expected a 20 percent drop in
* Full-year revenue was expected to be $5.18 billion,
according to company-provided consensus on its website. Pretax
profit was expected to be $247 million.
* The company reiterated on Wednesday it would raise its
2016 dividend by double-digit percentage points.
* Oil companies have cut back on spending for exploration
drilling and maintenance, reducing demand for engineering firms
such as Wood Group that provide services such as overhaul of
compressors, pumps, generators and rotating equipment.
* The company, founded in 1912 as a ship repair and marine
engineering firm, said it expected earnings before interest, tax
and amortisation (EBITA) to be in line with the company-provided
consensus of $370 million for the full-year ended Dec. 31.
* Wood Group's shares were up 1.6 percent at 929.5 pence by
1037 GMT on the London Stock Exchange.
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha
Gayathri and Martina D'Couto)