Share in north east based energy services giant Wood Group edged forward after the firm maintained its full-year guidance.
In a pre-close update to the markets for the six months to June 30, the group said there was no change to guidance given in May of full-year earnings before interest, taxation and amortisation of circa 20% lower than 2015 levels.
The company will deliver its half-year result in mid-August but said it expected the financial performance to demonstrate the benefits of its “asset light, predominantly reimbursable” business model.
The company said its intention was to deliver a double digit percentage increase in the dividend for 2016.
The firm said its engineering division’s upstream operation had picked up new work but subsea activity was on a lesser scale.
It said its PSN division’s Americas operation had seen relatively robust activity outside of the American shale market, while its international business had picked up contracts in Iraq and Azerbaijan and the Middle East remained a growth arena.
The company said the North Sea was “very challenging for both volume and pricing” but it was maintaining its leadng position in brownfield operations, maintenance and modifications.
It said the recent acquisiton of some assets of Enterprise Engineering Services would help boost is capabilities going forward.
In its market statement the company added: “The current environment remains challenging, however we are encouraged by the recent Upstream awards and feel well positioned for future activity in brownfield maintenance and US onshore.”
Meanwhile, Dean Jenkins, chief financial officer with Scottish engineering group Weir, will step down from the board on September 30.