* Expects FY EBITA to rise from a year earlier
* H1 rev rises 10.3 pct at $3.80 bln
* Shares jump 6 pct
(Adds analyst comment, updates share movement)
Aug 19 John Wood Group Plc, a British
energy services company, is banking on its presence in the U.S.
shale industry to drive growth, after its production services
business helped offset weakness in other divisions in the first
half of the year.
Shares in the company rose 6 percent, making the FTSE-250
component one of the top five percentage gainers on the
index on Tuesday morning.
The company expects full-year earnings before interest, tax
and amortisation (EBITA) to increase from last year, led by its
production services division, Wood Group PSN, which accounts for
more than 60 percent of total revenue.
"Wood Group's 1H 2014 (first half) results and the outlook
for 2014 reflect the importance of its exposure to U.S. shale
within (mainly) the PSN business," Credit Suisse analysts said
in a note.
The company's primarily shale-related U.S. onshore projects
have brought in more than $500 million of revenue so far this
year. Revenue from Wood Group PSN rose 22.4 percent to $2.34
billion in the first half of the year.
Wood Group PSN works on modification, enhancement and
abandonment of mature oilfields, while the company's engineering
segment designs, builds and maintains oil and gas facilities and
Wood Group said EBITA from production services rose 47
percent, but fell 9 percent in its higher-margin engineering
services segment, hurt by a slowdown in upstream projects in
Total EBITA rose marginally to $243.9 million for the six
months ended June 30 from $243.2 million a year earlier.
Total revenue rose 10.3 percent to $3.80 billion.
The company, which competes with Amec Plc, raised
its interim dividend by 25 percent to 8.9 cents.
Shares in the Aberdeen, Scotland-based company rose 4.6
percent to 786 pence at 0953 GMT on the London Stock Exchange.
They touched a high of 796.5 pence earlier in the session.
(Reporting by Abhiram Nandakumar in Bangalore; Editing by