December 12, 2018 / 7:34 AM / 9 months ago

Wood Plc expects higher full-year earnings, cautious on contracts

(Reuters) - British oilfield services group Wood Plc (WG.L) expects a jump in core earnings this year, it said on Wednesday, while staying cautious about the outlook for further contract awards as its oil-producing clients battle volatile commodity prices.

Wood said revenues this year will likely rise 10 percent as the company enjoyed a pick-up in customer demand led by a rise in crude prices and a traditionally stronger second half.

Still, a 30 percent plunge in oil prices LCoc1 from an October peak, amid worries about over-supply, is dampening investor sentiment.

“Although our medium term outlook remains positive, in oil & gas recent volatility in commodity prices may impact confidence and the pace of contract awards,” Wood said in a statement.

Wood’s outlook remained “generally favourable” across industrial end-markets, it added.

Overall, a broad end-market exposure positions the company well despite any volatility, Wood said, while forecasting further earnings growth in 2019.

The company, which operates in over 60 countries, forecast 2018 earnings before income tax and amortisation of between $620 million (487 million pounds) and $630 million, compared with $598 million a year earlier.

Reporting by Tanishaa Nadkar and Muvija M in Bengaluru; Editing by Sai Sachin Ravikumar

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