Wood Group cheers with positive outlook

- Shares rise on better-than-expected divisional performances- Turbine JVs behind schedule, set to recover by year-end- Group in strong financial positionThe year-to-date performance was slightly ahead of expectations in Wood Group's Engineering and PSN divisions, with its full-year outlook unchanged. The energy services group said its Turbine Joint Ventures business was adversely affected by delays on the Dorad contract, although this is expected to be largely recovered during the remainder of the year."The group remains in a strong financial position," it said. "Market conditions remain broadly consistent with those at the time of the preliminary results announcement in February, with a continuing focus on customer capital efficiency." In its Engineering division, Wood Group said its subsea business was seeing good activity levels, while its onshore pipelines was benefitting from healthy activity in US shale.It said the Sunstone acquisition had positioned it well in a market that is expected to grow to facilitate better access to end markets for oil & gas produced in Western Canada.Within PSN, the Production Services business was performing well, with North Sea demand remaining strong and benefits being seen from significant contract renewals secured in 2013."Performance in the Americas has been led by further growth in our US shale-related business, including the benefit of Elkhorn which has performed strongly since acquisition. We have invested further in the US shale market, adding specialist fabrication capability in the Bakken and establishing safety & technical training facilities in the Eagle Ford play," the group said. Elsewhere, the transition plan in Oman was progressing and the company expects to exit the contract in 2015. "Overall, our trading outlook for the full year is unchanged and we continue to expect earnings before interest, tax and amortisation to be up in 2014, with growth in Wood Group PSN offsetting a reduction in Wood Group Engineering," it said.The share price rose 3.11% to 793.39p by 08:30 on Wednesday. NR