News Column

John Wood looks to US shale industry boom to help growth

August 20, 2014

JOSEPH MILLIS



BRITISH energy services firm John Wood Group said yesterday that it was banking on the US shale ind-ustry to drive growth, after its production services business helped offset weakness in other divisions in the first half of the year.


First half earnings were virtually flat at $243.9m (147m), but the company said it expected a rise for the full year helped by progress in its production services division, PSN. Its shale projects fall mainly within PSN, which accounts for around 60 per cent of total revenue.


"Wood Group's [first-half] 2014 results and the outlook for 2014 reflect the importance of its exposure to US shale within [mainly] the PSN business," Credit Suisse analysts said in a note.


The company's primarily shalerelated onshore projects have brought in more than $500m (300m) of revenue so far this year.


Shares in the FTSE 250 company rose 4.92 per cent to close on 788.50p.


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Source: City A.M. (UK)


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