UK's Wood Group Sees 2017 Core Earnings Of $590-$600MM
Dec 13 (Reuters) - Oilfield services company John Wood Group Plc, which bought smaller rival Amec Foster Wheeler earlier this year, said on Wednesday it expects 2017 core earnings of between $590 million and $600 million.
Wood Group, which saw muted demand for its services after oil producers cut budgets amid weak oil prices, said there was better-than-expected outcome on some oil and gas projects even as its core oil and gas business remained challenging.
The company said its annualised cost savings from the Amec integration was ahead of plan, and maintained its target of over $170 million by the end of the third year following deal completion.
Wood said its pro forma 2017 results will include the results of Amec and heritage Wood Group from Jan. 1.
It will also exclude results of Amec's North Sea upstream business, North American nuclear operations and the disposed business of Global Power Group.
Shares of Wood Group were little changed in early trading.
British oil services companies, including Wood Group, Amec and Petrofac, have faced issues after UK's Serious Fraud Office launched a criminal probe last July into Monaco-based Unaoil in connection with suspected bribery, corruption and money laundering.
Wood Group, which has been carrying out its own investigation into the dealings with Unaoil, said it was cooperating with the SFO probe into Amec.
The company said it was also complying with voluntary requests for information from the U.S. Department of Justice and Securities and Exchange Commission.
(Reporting by Arathy S Nair in Bengaluru; Editing by Biju Dwarakanath)
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