Oil services firm Wood Group (WG.) takes a bath, down 8.3% to 750p, with revenue and profit down substantially in 2016 and little hope offered for much better in 2017.
The downbeat tone is affecting the wider sector, with Hunting (HTG) down 1.1% at 567.5p, Amec Foster Wheeler (AMFW) off 1.8% at 445.5p and Petrofac (PFC) slipping 1.6% to 855.5p.
HAD INVESTORS GOT AHEAD OF THEMSELVES?
Although we saw oil services as a potential beneficiary of a Trump presidency, particularly for companies like Wood with a US onshore footprint, we felt share prices had begun to price this in during a storming run which in Wood’s case saw the stock almost double from January 2016 lows by earlier this year.
Exceptional items see 2016 profit fall 61.8% to $34.4m and the company says it 'remains cautious on the near term outlook'. The company anticipates at best a ‘modest’ recovery in selected parts of the oil and gas market such as onshore US and 'greenfield' offshore projects.