Wood Group Anticipates Strong Financial Position Exiting 2009
Wood Group has issued the following pre-close update for the year ending December 31, 2009. The announcement of the results for the full year will be made March 2, 2010.
"We have continued to benefit from a robust performance from our production support related businesses, and for the Group as a whole we believe that EBITA1 for the year will be in line with market expectations.
"In our development related engineering activities, subsea and pipelines have performed well and remain active on a number of major subsea projects. However, as anticipated, project delays in upstream and downstream have reduced volumes and margins and this trend looks set to continue into 2010, although, with our good prospect list, we believe activity should begin to recover in the second half of the year. Production Facilities has seen a strong performance in 2009, including good activity in the North Sea supporting a broad range of customers.
Internationally we are developing our presence in Australia, West Africa and Brazil, and following our acquisition of Baker Energy are now the leading provider of operations support in the Gulf of Mexico, including deepwater facilities.
"In Well Support, our Electric Submersible Pumps business is making good progress in developing its international activities in the Middle East, Africa and Latin America. The US rig count is now recovering and this should provide positive momentum for our Pressure Control activities into 2010. We have also made good progress in developing Pressure Control's business internationally, with recent success in Mexico and the Middle East. Overall, the performance of the division has benefited from the early implementation of significant cost reduction measures.
"Our financial position remains strong and we will deliver good operating cash flow for the year. Overall, we believe our EBITA will be in line with market expectations. We remain confident in the medium and longer term fundamentals of our key markets and are continuing to develop our business to ensure that we are well positioned to deliver good growth as energy market activity recovers."
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