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Oilfield services firm Wood Group reaffirms 2016 EBITA forecast
December 14, 2016 / 7:56 AM / a year ago

Oilfield services firm Wood Group reaffirms 2016 EBITA forecast

Dec 14 (Reuters) - Oilfield services company John Wood Group Plc reaffirmed its full-year EBITA forecast and said it sees indications of modest recovery in selected markets, but warned that challenging market conditions are likely to persist in 2017.

* 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.

* “We are encouraged by the positive rig count movement in the second half of 2016, although we have yet to see any significant improvement in activity,” the company said in a statement.

* John Wood, which counts BP Plc as one of its customers, said in August that it expected a 20-percent drop in full-year EBITA.

* 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 which provides services such as overhaul of compressors, pumps, generators and rotating equipment. (Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha Gayathri)

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