John Wood Group shares fall on FY core earnings dip

North Sea OilJohn Wood Group cited challenging conditions in core oil & gas markets. (Image source: Berardo62/Flickr)John Wood Group Plc reported a fall in full-year core earnings due to challenging conditions in its core oil and gas markets and said it expects only a modest growth in core earnings for the full year

The company, which bought rival Amec Foster Wheeler, said its core earnings fell about 11 per cent to US$598mn for the year ended 31 December 2017.

Shares of the oilfield services provider were down 3.6 per cent at 618.40 pence at 1013 GMT.

Oil prices, which have climbed from multi-year lows owing to OPEC's production cuts, are still nearly 60 per cent lower than levels seen a decade earlier.

Oil producers have responded by slashing spending, hurting companies like John Wood, which are heavily dependent on such spending.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?