Timing, as they say, is everything in markets. For investors in Wood Group (WG.), news of “good momentum in trading, cost and revenue synergy delivery” couldn’t have arrived at a better moment, providing some reassurance that the oilfield services outfit is at last managing to capitalise on the rise in oil prices.
For an in-line, expectation-meeting trading statement to be greeted with a 9.5 per cent share price bounce tells you much about the market’s concerns with Wood and its integration of Amec Foster Wheeler. But while trading outside of the Americas division is merely “robust” or “showing moderate growth from a low base”, orders are starting to pick up from shale, power and downstream clients.
Analysts at Numis think pre-tax profits will rise to $304m, giving adjusted EPS of 61.1¢.
