Energy Voice | Wood ‘on track’ for growth in 2018

Energy service giant Wood said it was on track to deliver growth in 2018 as the oil market shows early signs of a recovery.

The Aberdeen-headquartered firm said it expected to deliver first-half revenues of £3.89-3.97 billion and Ebita in the range of £190-199 million.

The company reported a revenue of £2.33bn for the first six months of 2017.

Net debt at the end of June should be around £1.3bn, a reflection of improved operational cash generation.

Wood, which recently acquired Amec Foster Wheeler, achieved £15m of cost synergies in the first half against an expected total of more than £38m for the full year.

Wood thinks it can deliver annual synergies of at least £130m by the end of the third year following completion of the Amec FW deal.

The company said North Sea activity was showing “moderate growth” on 2017, albeit from a low base, and is expected to strengthen in the second half.

Wood chief executive Robin Watson said: “In the first half we have seen continued momentum in trading, cost and revenue synergy delivery. Our full year outlook is unchanged.

“We are continuing to see early signs of recovery in our core oil and gas market and good contract awards in broader industrial sectors. We remain on track to deliver growth in 2018”

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