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Energy firm reports strong growth

Category: Scotland Business News — Paul Morgan on September 1, 2012

Aberdeen energy service company Wood Group has seen strong growth over the last six months – with pre-tax profits increasing nearly 60 per cent.

The group is reporting that the favourable condition of the energy market is one factor behind the growth, seen across all three divisions of the firm despite uncertainty on a global level and a reduction in commodity prices.

In the six months to June 2012, continuing operations rose to £2.1bn, an increase of 35.7 per cent. In the same period, pre-tax profits rose to £101m, an increase of 56 per cent.

There are many companies thriving with the health of the energy, oil and gas market in Scotland at the moment. Many of them are finding great scope for expansion too, with Scottish factoring companies helping many release funding otherwise tied up in unpaid invoices for such projects.

With rising profits across the board, wide scale economic revival could well be sparked from the energy sector.

Presently employing over 41,000 on a global scale, with operations in 50 countries, Wood Group is certainly doing its part.

The leading light in the firm was its rotating equipment division, which saw its pre-tax profits soar by nearly 70 per cent. Its engineering division followed this with a near 44 per cent rise in pre-tax profits.

There was also a substantial rise in the profitability of its production services arm. Wood Group PSN enjoyed a strong performance in both the North Sea and North America. The North American growth was largely fuelled by the growing policy for extracting gas from shale in many US states.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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