Wood Group Positive for 2010

1 March 2010 (Last Updated March 1st, 2010 18:30)

Engineering services provider Wood Group remains upbeat about a market rebound in 2010, despite posting a 6% decline in its full year revenue to $4.9bn on a stronger US dollar and reduced global exploration and production spend. A strong growth in production-related businesses was o

Engineering services provider Wood Group remains upbeat about a market rebound in 2010, despite posting a 6% decline in its full year revenue to $4.9bn on a stronger US dollar and reduced global exploration and production spend.

A strong growth in production-related businesses was offset by a reduction in engineering revenue, well-support activities primarily in the US natural gas market and lower revenue in gas turbine services, the company said.

Group earnings before interest, tax and amortisation was down by 19% or 14% to $358.4m.

Volatile financial markets and lower oil and gas prices contributed to a reduction in global E&P expenditure of around 15% in 2009, but oil prices appear to be on the rebound, which will lend support to new oil and gas developments, the Wood Group said.