Following a reassuring second-quarter update from oil services group John Wood Group (WG.), the company's half-year figures on Tuesday will likely reflect a step-up in US shale activity, tempered by the oil industry's overall focus on cutting capital expenditure. That fall-away in capital budgets has led to a flagged slowdown at Wood Group Engineering - but performance here could still slightly beat expectations, primarily due to more subsea work.
Performance at the half-year point is likely to also reveal that oil service contracts have been delayed, rather than cancelled outright. The market will be looking for more detail on the financial performance of the group's turbine joint ventures, too, which have been hit by delays. Interest will also centre on the level of contract activity in the Gulf of Mexico and the North Sea. As a dollar-reporting business with large revenue streams from the UK continental shelf, Wood Group's energy services unit PSN should benefit from sterling's continued strength against the greenback.