Engineering firm secures near £500m BP deal
AN engineering firm has secured a near £500m five-year energy industry deal.
The firm, which previously took over Gateshead-based coatings company Pyeroy, announced the agreement after a trading update hailed its resilience against energy sector cutbacks and falling oil prices.
The firm operates Wood Group Engineering, Wood Group PSN and Wood Group GTS, which provide engineering and construction management for oil, gas and renewable energy projects.
Speaking about the BP agreement, Dave Stewart, UK managing director of Wood Group’s PSN division, said: “We have more than 40 years of experience working with BP globally and this contract is testament to the partnership and understanding we have developed.”
In a report covering the period up to December 31, bosses said 2014 has been a solid year, with its PSN Production Services division offsetting a fall in its engineering and turbine businesses.
It also allayed fears falling oil prices would hamper its progress.
The report added: “Operator focus on efficiency and the reduction in the price of oil is leading operators to re-consider their spending plans for 2015 with a consequential impact on service company activity.
“We expect our largely reimbursable order book and prospects, range of longer term contracts, and spread of business to provide relative resilience in 2015.
“Our North Sea business has remained robust, benefitting from work performed under long-term operations and maintenance contracts, and service expansion from the Pyeroy acquisition.”
The company has also bought Swaggart Brothers, a US-based civil construction and fabrication company for nearly £23m, which employs about 200 people and operates in the oil and gas sector.
Bosses said it will operate under Wood Group’s civil, concrete, mechanical banner.
Wood Group last year took over Pyeroy, which previously won a deal to apply protective paint to the forward navigation bridge on the HMS Queen Elizabeth aircraft carrier.
- The Northern Echo
- Published on:
- December 11, 2014
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