(Adds share price, detail, analyst comment)
By Stephen Eisenhammer
LONDON, Dec 12 (Reuters) - British energy services companyJohn Wood Group Plc has warned that profits from itsengineering division would be down significantly next year dueto weakness in Canada, sending its shares down 12 percent to a12-month low.
The company was the biggest faller in the FTSE 250 index of mid-sized companies as analysts said they would becutting their forecasts for 2014, as oil service companies arehit by a reduction in spending at major oil companies whereinvestor pressure has resulted in tighter purse strings.
Wood Group said profits from its engineering division, whichcarries out early-stage design work mainly on offshore oil rigsand accounts for around half its total profits, would be down byabout 15 percent next year.
Peers in the oil services sector to have warned on profitthis year include Italy's Saipem, Norway's AkerSolutions and Subsea 7.
UK rival Petrofac also recently gave a cautiousoutlook for the next two years. Its shares were dragged lower byWood Group's warning to be down 2.8 percent, making them the top faller in the pan-European FTSEurofirst 300 indexin morning trade.
Wood Group said the weaker performance in engineering shouldbe offset by strong results from its services division WoodGroup PSN, lifted by buoyant U.S. shale and North Sea markets.
Wood said it expected to meet forecasts for 2013 growth. AThomson Reuters I/B/E/S poll of analysts found average estimatesfor 2013 pretax profit of $457 million on revenue of $7.2billion.
The company also said it expected 2013 core profit (EBITA)from its gas turbine division, GTS, will be lower than theprevious year.
"There is no getting around the fact that Wood Group's ...trading update contains little to provide festive cheer," DavidThomas, analyst at Credit Suisse, said in a note to clients,adding he expected at least a 5 percent cut in consensusforecasts for earnings per share in 2014.
Wood Group had in August lowered its 2013 core profit, orearnings before interest, tax and amortisation (EBITA), guidancefor its engineering division to growth of between 10 and 15percent, from 15 percent, on the back of weakness in Canada'star sands market.
(Additional reporting by Francesco Canepa; Editing by DavidHolmes)