Wood Group upbeat despite turbine contract delays

Energy services giant Wood Group today said trading since the start of its new financial year has been “slightly” ahead of its hopes, but delays to a power station contract in Israel have hit its turbine joint ventures.

The Aberdeen-based group said it remains on track to deliver a rise in underlying pre-tax profits for the full year, with growth at its PSN production services arm offsetting a reduction at its engineering division.

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In a statement ahead of today’s annual meeting, Wood said PSN has been helped by the boom in the US shale market, while demand remains strong in the North Sea.

However, the firm said its turbine joint ventures business has suffered higher costs associated with the delays to the Dorad power station contract in Israel, although these are expected to be largely recovered during the year ahead.

Following today’s annual meeting, chairman Allister Langlands will retire and hand over the reins to former SSE boss Ian Marchant.