Tuesday, March 12, 2013

Group is well placed for the future strength

WITH Wood Group has a number of challenges in recent times, which now seems to give more robust results.

The organization, also known as John Wood Group, the Aberdeen-based energy company with operations covering the world. The group consists of three main business, but engineering division continues to explain most of the profits.

Using expertise in energy markets throughout the supply chain to serve customers on both ends of the oil and gas industry and power plants.

Wood Group PSN (Production Services Network) to help customers optimize production efficiency and costs, and operating in more than 30 countries to keep customers everywhere. Produces about 20% of group revenues.

Meanwhile, Wood Group GTS (Gas turbine Service), specialists in maintenance and repair, and servicing of high-speed rotating equipment, account for approximately 16% of sales.

2011 performance was in line with analysts' expectations, even though it was a transformational year for the group. We believe that these results should improve from here Thanks to basic strength.

The first is a strong market position in several niche areas where it operates.

In addition to engineering, design and project management services of gas turbines, the company has particular expertise in deepwater where they hold the listener.

The Gulf of Mexico Oil Spill starkly illustrates the level of expertise required to operate at extreme depths. After seeing the problems that BP and its contractors have suffered during and after the disaster, other operators are interested to avoid such problems and Wood Group is ideally positioned to help them.

Second, the ability of the company to offer a range of energy services market means that their collective value to their customers the ability greater than the sum of its parts. For example, Wood Group GTS division offers maintenance, repair and overhaul for gas turbines are not only but also steam turbines and other high-speed rotary equipment.

Third, the price of natural gas in the U.S. has been declining since the middle of last year and remain depressed. There is a growing consensus that lower gas prices are here to stay and if that happens be to start replacing coal in power plants.

This is very positive for Wood Group GTS in the long run now that it is operating leaner more focused.

While the elements of the book sequence will always depend on global economic growth cycle, the company is well positioned to excel at this point in time.

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