John Wood Group PLC (LON:WG.) shares rose on Friday as the energy services group said it has seen good trading momentum across its businesses in the first quarter and its outlook for 2018 remains unchanged.
In a statement to be delivered at its annual general meeting, the FTSE 250-listed firm said its performance in the first quarter has been led by its Asset Solutions Americas business, driven by capital projects activity in power, downstream, chemicals and US shale.
Wood Group expects to deliver revenue and earnings growth and an in-year benefit from cost synergy delivery of more than US$50mln and is confident that underlying earnings (EBITDA) will be in line with market expectations.
The firm - which last year took over troubled rival Amec Foster Wheeler - said: “In addition to our typical second half bias, the phasing of cost synergies, projects and market recovery is expected to result in a circa 60% weighting of earnings to the second half of the year.”
The company said activity in its Europe, Africa, Asia and Australia division remains robust, contributing 35% to group revenue.
Robin Watson, Wood Group's chief executive, said: “The first quarter has demonstrated the significant benefits of the operational platform we have created.”
He added: “Our integration programme is ahead of schedule and we are seeing good momentum in trading, cost and revenue synergy delivery. Our overall outlook is unchanged and we are confident of returning to growth in 2018”.
In early morning trading, Wood Group's shares were up 4.8% to 615.60p.