Wood Group warns on market volatility; sees FY in line

Oil services outfit Wood Group warned of future market volatility as it reported 2018 results would be in line with expectations.

The company said positive trading momentum had continued and our full year results would "demonstrate good organic revenue growth"

"We have delivered a stronger second half, due to our typical second half bias and the phasing of cost synergies, projects and the wider market recovery," the company said.

"Looking to 2019, the outlook remains generally favourable across our industrial end markets. Although our medium term outlook remains positive, in oil & gas recent volatility in commodity prices may impact confidence and the pace of contract awards."

Wood said it currently anticipated further earnings growth in 2019 underpinned by additional cost synergy delivery with an impact of around $60m in the full year.

"We expect full year revenue to be up over 10% on proforma 2017, in the region of $10.9bn - $11.1bn. Full year EBITA is expected to be in the range of $620m- $630m, in line with guidance in August and market expectations.

In a separate annoucement, Wood said had won major contract to deliver engineering, procurement and construction (EPC) services on a reimbursable basis for an unnamed plastics manufacturing facility along the US Gulf Coast.

The five-year contract will see Wood deliver EPC services for key infrastructure to support the plastics facility, including a world-class ethane steam cracker unit, feeding a monoethylene glycol unit and two polyethylene units.