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CORRECTED - UPDATE 2-Wood Group profit in line, confident on 2011
(Correcting share price and time in paragraph 6)
* FY EBITA down 4 pct to $345 mln vs consensus of $337 mln
* Raises FY dividend by 10 pct
* CEO says no plans for anymore major disposals
* Eyes opportunities in Brazil and Canada
* Shares rise 0.2 percent
By Sarah Young
LONDON, Feb 21 (Reuters) - British energy services firm John Wood Group (WG.L) posted earnings in line with expectations and said it was confident on future growth as oil company spend recovers which should boost performance at its engineering unit.
Earnings before interest, tax and amortisation (EBITA) fell 4 percent to $344.8 million in 2010, the company said on Monday, compared with a consensus forecast of $337.4 million from a company-supplied poll of analysts.
Wood Group, which provides oilfield services to companies such as BP (BP.L) and Shell (RDSa.L), posted a strong performance in its well support division, offset by subdued demand for large engineering projects.
The company said earlier in February it was selling its well support division, a unit which manufactures pumps, to General Electric Co (GE.N) for $2.8 billion after it decided to focus on providing engineering services. [ID:nN13242867]
"The lack of recovery in engineering and production facilities margin remains a concern," said Numis Securities analyst Sanjeev Bahl.
Shares in Wood Group traded were up 0.23 percent to 647.5 pence at 1122 GMT, having gained 13 percent since the company said it was selling the well support unit and planned to return not less than $1.7 billion to shareholders.
Wood Group said it was raising its dividend by 10 percent after proposing a final dividend of 7.6 cents to bring the full-year figure to 11 cents.
Chief executive Allister Langlands said he anticipated good growth over the next few years as bidding volumes for engineering projects rose over the year and the company continued to see high demand for its production facilities services, particularly in international markets.
After repositioning the business with the sale of the well support unit which followed the company's acquisition of Scotland-based rival PSN in 2010, Langlands said he was happy with the current shape of the company. [ID:nLDE6BC0J7]
"We are not looking at any major disposals going forward at this time," he said.
The company's gas turbine services (GTS) division which provides turbine maintenance to rotating equipment across the power, oil and gas and renewable energy markets, posted earnings which were 30 percent lower in 2010 than the previous year.
"We are disappointed with the performance of the GTS business in 2010 and part of that's due to a tough power market and really all our energies and focus on GTS is going to be improving the performance in the next couple of years," said Langlands.
Small bolt-on deals would characterise the company's acquisition strategy in future, he said, adding that opportunities in Brazil and the Canadian oil sands were of interest. (Editing by Lorraine Turner; Editing by Hans Peters) ($1=.6152 Pound)
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