Wood Group sees weaker start to 2017 than hoped

Aberdeen oil services business Wood Group has flagged 'weaker than anticipated' trading in the new financial year.

Wood Group stressed that full-year trading expectations remained 'broadly unchanged'. Picture: Contributed

The company told investors at its AGM that although activity levels in new offshore projects in some areas had improved, that was “more than offset by weaker activity elsewhere” including the North Sea.

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However, it stressed that full-year trading expectations remain “broadly unchanged” and said it was seeing the benefit of structural cost reductions achieved in 2016.

Wood also said yesterday that it had secured a new framework agreement to provide study engineering for North Caspian Operating Company’s (NCOC) offshore and onshore asset portfolio in Kazakhstan.

The contract, for an disclosed sum, extends its relationship with NCOC, through which it is already holds a multi-year engineering, procurement and construction contract supporting its Kashagan operations via its joint venture PSN KazStroy JSC.