Wood Group shares slide on update

SHARES in Wood Group, the Aberdeen-based oil services group, were the biggest faller in the FTSE 100 today, down 4.6 per cent, after analysts said a trading update hinted at caution for 2013.

The company said conditions in energy markets remain favourable and that it expects to “deliver good growth for the year in line with expectations”.

But analysts at Canaccord Genuity said the update suggests “some reason for caution in 2013” and lowered their target price to 900p from 920p.

Wood Group said earnings growth in its engineering division in 2012 is expected to be up by more than 30 per cent. It was seeing strong activity in areas including the North Sea, but anticipates some reduction in the Canadian oil sands market.

It said growth at its Wood Group PSN production services business was underpinned by strong performance in the North Sea and in North America.