Photo: Wood Group
Dec 14 (Reuters) – Oilfield services company John Wood Group Plc’s CFO David Kemp said on Wednesday that the company showed modest recovery in some of its oil and gas markets, including U.S. shale and offshore oil exploration and drilling businesses.
* U.S. shale is the largest contributor to company’s operations and maintenance contracts in its west region, which includes the Americas. John Wood Group said a steady rise in rig count would help its assets in the Permian, Eagle Ford, Marcellus, Utica and Bakken basins as the market recovers in 2017.
* The number of oil rigs operating in the United States rose for a fifth straight week to 477, reaching the highest level since January as a surge in crude prices continued to bring equipment back into operation, weekly data from oil and gas services company Baker Hughes showed.
* U.S. shale production is set to recover from a five-month decline in January, the U.S. government said on Monday. Oil rose to an 18-month high on Monday after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to tackle global oversupply, though prices slipped late in the day.
* Wood Group, which counts BP Plc as one of its customers, said in August that it expected a 20 percent drop in full-year EBITA.
* Full-year revenue was expected to be $5.18 billion, according to company-provided consensus on its website. Pretax profit was expected to be $247 million.
* The company reiterated on Wednesday it would raise its 2016 dividend by double-digit percentage points.
* Oil companies have cut back on spending for exploration drilling and maintenance, reducing demand for engineering firms such as Wood Group that provide services such as overhaul of compressors, pumps, generators and rotating equipment.
* The company, founded in 1912 as a ship repair and marine engineering firm, said it expected earnings before interest, tax and amortisation (EBITA) to be in line with the company-provided consensus of $370 million for the full-year ended Dec. 31.
* Wood Group’s shares were up 1.6 percent at 929.5 pence by 1037 GMT on the London Stock Exchange. (Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha Gayathri and Martina D’Couto)
(c) Copyright Thomson Reuters 2016.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,921 members that receive our newsletter.
Have a news tip? Let us know.
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,921 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
