The share price of Wood Group (LSE: WG) — the multinational oil and gas services company — was up almost 5% in early trading, following publication of the company’s full year results for the year to 31 December 2013.
Pre-tax profit was up 14%, at $412.8m, on total revenue that grew 3%, to $7,064.2m. Adjusted diluted EPS increased by 16%, to 98.6 cents, and the total dividend for the year was up 29%, at 22.0 cents per share.
The company also reported that it has invested $276m in strategic acquisitions, including the purchase of Elkhorn, a Wyoming-based provider of construction services for midstream oil & gas facilities in the US shale market.
Commenting on the results, chief executive Bob Keiller said:
“2013 represents another year of good growth for Wood Group. In my first full year as CEO, the leadership team and I have considered the Group’s strategy which remains sound and positions us well for the longer term. We are predominantly an upstream oil and gas services business and our intention is to broaden and deepen the services we can offer in this sector.
“We have reviewed all parts of the Group from three perspectives: risk profile, current and future financial performance and strategic fit with the Group overall, and this has resulted in a number of actions including the acquisition of Elkhorn and the joint venture with Siemens. Looking to 2014, our mix of opex and capex activities and the contribution of completed acquisitions is expected to lead to growth overall.“
Despite this morning’s rise, at 704p Wood Group’s share price is 11% down on this time last year, in stark contrast to the FTSE 100’s 6.4% rise over the same period. However, over five years, Wood Group’s share price has significantly outperformed the index, gaining 224% compared to the FTSE 100’s 60.5%. At its current share price, Wood Group stands on a P/E of around 11.9.
