SHARES in Wood hsve risen eight per cent yesterday after the company said it expected to post a big increase in profits for 2019, in line with analysts’ expectations.

In an update on trading, the Aberdeen-based engineering giant said it expected to record an operating profit before exceptionals of $410m (£315m) to $420m, for 2019, compared with $357m in the preceding year.

Wood judged to be ahead of oil services pack on renewables

Chief executive Robin Watson said: “Our full year 2019 results will demonstrate earnings growth, margin improvement and strong operational cash generation, resulting in a reduction in net debt.”

Wood increased its exposure to markets such as environmental and infrastructure engineering though the £2.2 billion acquisition of Amec Foster Wheeler in 2017.

This reduced the group’s reliance on the North Sea oil services business in which it made its name.

North Sea becomes 'hotspot' as range of predators eye assets

Wood said yesterday that revenues in its environment and infrastructure solutions business remained robust.

The company made no mention of the North Sea in the update.

At the company’s general meeting in May Wood said it expected to see moderate growth in the North Sea as 2019 progressed. It is thought this expectation was fulfilled.

Wood said yesterday that it had been impacted by a slowdown in shale activity in the US in the second half, without giving details. Gas price weakness is weighing on the US onshore market.

Wood shares closed up 28.1p at 398.1p.