Wood Group shares rose 3% as the group said it was on course to deliver good growth in the first half and remained confident of meeting full year expectations.
In an interim trading statement, the Aberdeen-based company said Wood Group Engineering continued to perform well and was on track to achieve growth of around 15% in earnings before tax, interest and amortisation. The upstream division had been awarded FEED and detailed engineering scopes in areas including Canada, the Gulf of Mexico and Norway, and work on the Ichthys and Mafumeira Sul projects was progressing well. In subsea and pipelines, Wood had recently won onshore pipeline engineering projects with Dow Chemical and Williams in the US, and was seeing strong activity across its principal subsea hubs in the UK, US and Asia Pacific.
The group also recently acquired Intetech to enhance its integrity management offering. It said the downstream business had achieved "higher volumes contributing to improved performance". Wood Group PSN's onshore US business was showing good growth, led by performance in the shale regions.
Offshore US, it had secured operations and maintenance work for Hess in the Gulf of Mexico. In the North Sea, activity remained strong and recent contract renewals with Ithaca Energy and Teekay had helped reinforce PSN's position as leading operations management provider in the region.
In Wood Group GTS Maintenance, performance in the engine overhaul activities improved in the second quarter helped by cost reduction initiatives. In the power solutions business, change orders and contracts were on track, and the group continued to pursue a number of smaller opportunities which should contribute to 2014.
Wood said: "Looking further ahead, our strong balance sheet, market fundamentals, leading positions, and balance of opex and capex related activities, position the group well for longer term growth."
The shares closed up 24.5p at 805.5p.
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