Wood Sees Profit Rise
British engineering and oilfield services provider Wood Plc said on Wednesday its operating profit for the first half would be 25% higher than last year, sending its shares up more than 7%.
The company said its overall performance in the first half was better than a year earlier, with earnings growth and margin improvement.
The company attributed the improvement in operational margins during the first half to strong energy related activity at its Asset Solutions Europe, Africa, Asia and Australia (ASEAAA) unit, which contributes about 35% to overall revenue.
Aberdeen-based Wood also stuck to its expectation of revenue growth, strong earnings growth and cash generation in 2019.
Wood's said the ASEAAA unit contributed to good earnings before interest, taxation, deprecation and amortization (EBITDA) growth in the first half and is expected to see higher activity in the second half.
Adjusted EBITDA are expected to rise 7%, while revenue for the first half is in line with the last year, the company added.
Shares of the company were last up 6.7% at 445.9 pence, taking it to the top of London's mid-cap index.
(Reporting by Shariq Khan, Noor Zainab Hussain and Pushkala Aripaka; editing by Gopakumar Warrier and Rashmi Aich)