John Wood Group sees trading pick up in first quarter

Energy services company John Wood Group saw trading momentum pick up across its business throughout the first quarter of its trading year, leading the group to confirm its 2018 outlook.

On Friday, Wood Group told investors its performance had been led by its Asset Solutions America business, principally driven by a pick up in capital projects activity in power, downstream, and chemicals.

Wood Group, which bought rival Amec Foster Wheeler at the end of last year, expects to report a growth in both revenues and earnings, as well as an in-year boost of more than $50m as a result of cost synergies and reiterated its stance on its EBITDA coming in line with market expectations.

"In addition to our typical second half bias, the phasing of cost synergies, projects and market recovery is expected to result in a circa 60% weighting of earnings to the second half of the year," the firm said.

Robin Watson, Wood Group's chief executive, said, "The first quarter has demonstrated the significant benefits of the operational platform we have created. Our integration programme is ahead of schedule and we are seeing good momentum in trading, cost and revenue synergy delivery. Our overall outlook is unchanged and we are confident of returning to growth in 2018."

The group will post a trading update for the first half of the year on 28 June.

As of 1020 BST, Wood Group shares had climbed 6.4% to 625p.