Wood Group said it is on target to meet full-year trading expectations, despite delays to a major turbines project.
The Scottish energy services giant told investors ahead of its annual meeting that performance in its engineering and production services divisions had been slightly ahead of expectations in the year to date.
However, the company said its Turbine Joint Ventures (TJV) operation had been “adversely impacted” as a result of delays on the Dorad Energy project in Israel, a scheme to construct an 800MW power plant.
Wood Group said costs had risen as a result of the extended schedule at Dorad, and TJV was “behind plan” from a financial perspective although it expected to claw back much of the extra outlay in the latter part of the year.
The firm said its 2014 outlook remained unchanged, with earnings before interest, taxation and amortisation expected to grow in the full-year.
The update came as former SSE chairman Ian Marchant took over from Forfar-born Allister Langlands as the north east-based group’s new chairman.
Mr Marchant, who more than doubled the value of Perth-based SSE in a decade at the helm, first joined the Wood Group board in 2006 and was appointed senior independent non-executive director in 2012.
It was revealed in February that Mr Marchant would take the reins after yesterday’s AGM after Mr Langlands who joined Wood Group as finance director in 1991 and was made chief executive in 2007 before taking up the chairmanship two years ago announced he was retiring.
David Woodward yesterday took on the senior independent non-executive director role, while Cairn Energy managing director and chief financial officer Jann Brown will complete her switch from Edinbugh to Aberdeen when she joins the company’s board today.
All of the resolutions raised at the firm’s annual meeting were duly passed yesterday.
The company’s shares closed the day up 5p at 774.50p.