WOOD Group, the Aberdeen-based energy giant, is confident it will meet expectations of profit and turnover growth in its current financial year.
Analysts forecast the company, which employs about 8000 of its 43,000 worldwide workforce in the north east, will deliver a 17.7% increase in profits before tax for $427 million (£266m) for 2013.
Turnover at the group, whose businesses provide a range of engineering, production, maintenance, gas turbine and oil and gas services, is expected to rise to $7.18 billion (£447m). Wood declared profits before tax of $362.7m on turnover of $6.8bn in 2012.
The company, which will release its full-year trading update on December 12, provided the context behind its growth expectations for the current year in an interim management statement yesterday.
It noted the progress made by Wood Group PSN, its oil services division, amid "robust" activity levels in the North Sea. It has announced seven major contract renewals in the North Sea this year. Growth at Wood Group PSN is also being driven by its onshore share-related business in the US, which employs more than 1900 staff.
The company confirmed Wood Group PSN has started to mobilise its brownfield and procurement contract with ExxonMobil in Papa New Guinea, while in Oman it is expecting an "improvement in underlying financial performance for the full year".
Robin Watson, the chief executive of Wood Group PSN, said: "The North Sea remains extremely important for Wood Group, as this year Wood Group PSN won seven significant North Sea contract renewals, plus our first life-of-field contract which will see WGPSN operate and deliver managed services to the Beatrice offshore platforms and Nigg onshore terminal until the end of their operating life.
"Wood Group now employs more than 11,000 people onshore and offshore in the UK, 8000 of whom work in Scotland."
The company used the interim management statement to highlight the progress made by Wood Group Engineering, which it expects to deliver growth in earnings before interest, taxation and amortisation (EBITA) between 10% and 15% this year.
It noted the contribution made by its upstream Mafumeira Sul and Ichthys projects in Angola and Australia respectively, both of which are due to complete on schedule.
Wood said the division continues to be active "on a range of other projects" but highlighted that, in line with expectations, its business in western Canada "has remained subdued".
Wood reported "good activity" on it subsea and pipelines work at key hubs, adding that it is benefiting from onshore pipeline work related to the US shale gas sector.
And in downstream operations it said its process and industrial operations are "on track to deliver an improved performance over 2012".
On Wood Group GTS, which provides maintenance, repair and overhaul services for turbines, the company said it expects EBITA for 2013 to be "slightly ahead" of last year.
It noted the maintenance side was benefiting from "cost reduction initiatives, particularly in our power plant services business". On power solutions, Wood Group GTS has completed the NRG and Pasadena projects in the US and is on track to complete the Dorad contract in Israel around year end.
The group said: "We anticipate improved operating cash flow in the second half, and our strong balance sheet provides a good platform for growth.
"Overall, the group is confident of achieving full year performance in line with expectations."
Shares in Wood Group closed down 3p at 790p.
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