Wood Group pre-tax profits up 14 per cent, sees acquisitions boosting 2014

Oil services company Wood Group reported a 14 per cent increase in pre-tax profits to 412.8m dollars for the year to December 31st, 2013.Revenues rose 3% to $7.1bn, while profits before interest, tax and amortisation (EBITA) jumped 16% to $533m. The US-based company said it would increase its dividend by 29% to 22 cents a share.Chief executive Officer Bob Keiller said the company expected contributions from the new gas turbine management joint venture with Siemens, and the Elkhorn shale services unit bought last year to help growth in 2014.However, Keiller said Wood's engineering division would see a 15% cut in EBITA this year, largely due to an anticipated reduction of upstream work."We anticipate growth in subsea & pipeline to be more than offset by a reduction in upstream, where we see good prospects although not of the scale of the significant offshore projects recently completed," Keiller said.He added that a review of operations had shown that the company's risk profile on large lump sum projects was "too high", especially in the group's power division. Keiller said the almost-completed $875m Dorad power station contract in Israel would generate a loss this year, although it would be profitable overall but he said "we will not pursue further opportunities of this size".FP