Wood Group, the Aberdeen-headquartered energy services heavyweight, said the integration of Amec Foster Wheeler was progressing ahead of plan as it flagged an underlying profit haul of some $600 million (£450m).
The firm, which saw a fall in demand for some of its services after producers cut budgets amid weak oil prices, said there was better-than-expected outcome on some oil and gas projects despite its core market continuing to “present challenges” in 2017. Wood Group has been increasingly diversifying its business interests, announcing a string of contract wins and renewals recently in sectors such as biotechnology and nuclear decommissioning.
In a pre-close trading update, the group said its annualised cost savings from the Amec integration were ahead of plan, and kept with its target of more than $170m in synergies by the end of the third year following deal completion.
It is currently estimating that 2017 underlying earnings from continuing businesses will be in the region of $590m to $610m.
At the time the £2.2 billion Amec Foster deal was announced, Wood Group chief executive Robin Watson said: “This transformational acquisition creates a global leader in the delivery of project, engineering and technical services to energy and industrial markets.”
Meanwhile, William Setter will step down from his role as company secretary on 18 December but continue as group financial controller. Martin McIntyre is appointed as new company secretary.