British oilfield services group Wood Plc expects a jump in core earnings this year, it said on Dec. 12, 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% 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% plunge in oil prices from an October peak, amid worries about over-supply, is dampening investor sentiment.
“Although our medium term outlook remains positive, in oil and 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 favorable” 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 EBITDA of between $620 million and $630 million, compared with $598 million a year earlier.
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