Group eyeing more acquisitions to accelerate growth
Oil and gas services giant Wood Group has hinted at further acquisitions in a market update today which reports growth across all divisions.
Chairman Sir Ian Wood will tell shareholders at the group's annual general meeting today the company is on track to deliver on full year performance expectations.
Wood Group said in a market update today its strong balance sheet “provides a robust platform for organic and acquisition led growth”.
In a market update posted today, Wood Group said its upstream engineering division was benefiting from high levels of activity which is supported by a strong order book.
Wood's engineering division has recently secured contracts with Samsung, Chevron and Daewoo, while Wood PSN secured a significant new contract with Premier Oil in the North Sea.
Wood Group PSN, created from its £600 million acquisition of Production Services Network (PSN) in December 2010, reports strong activity levels in the UK and Americas, and predicts future growth in Africa and the Caspian.
The group funded the buyout of PSN from the sale of its £1.7 billion sale of its well-support division to General Electric – a deal which also saw the group return £1.05 billion to shareholders.
Gas turbine division Wood Group GTS is also reporting higher activity levels and growth and is currently pursuing new prospects in Africa, the Caspian and the Middle East.
The group said its downstream, process and industrial division activity continues to be impacted by lower expenditure in North American refining market.
Aberdeen-based Wood Group now operates in 50 countries and employs around 40,000 people globally.
Shares in Wood Group rose nearly three per cent in early trading today.