Thriving oil industry boosts Wood Group profit

ENERGY services firm John Wood Group this morning posted a 35 per cent jump in profits, as it was boosted by increased investment from oil and gas companies.

The group, which designs, builds and maintains oil and gas facilities and pipelines, said earnings before interest, tax and amortisation for continuing operations was $461.1m (£305m) over the full year, in line with forecasts.

The company’s engineering division posted a 36 per cent jump in earnings, flattered by increased activity in its upstream business.

Earnings for the division are expected to grow around 15 per cent this year, thanks to Wood Group’s strong order book and good prospects in a number of important regions including the Gulf of Mexico, the Middle East, Norway and Asia Pacific.

Bob Keiller, who took over as chief executive at the end of last year, said today: “We are set to make progress in all divisions in 2013, and I look forward to leading our further development in good long term growth markets.”

The FTSE firm pledged a 26 per cent hike in the dividend to 17 cents a share.