The downturn in the oil and gas market has weighed on Scottish energy services giant Wood Group’s half-year results.
Total revenue for the six months to June 30 was down 19.3% at $3.06 billion, while profit before tax and exceptional items also fell 14.3% to $156.3 million.
The north east-based firm said the oil and gas sector remained “very challenging” and it had continued to take measures to offset the impact of lower activity and pressure on prices.
Wood said it had reduced its workforce by 13% since December, a total drop of around 5,000. It had made overhead cost savings of $40m in the first half of the year and was on track for full-year efficiencies in excess of $80m.
“To achieve this, we have reduced headcount and discretionary spending, put tighter controls in place, accelerated shared service programmes, and are continuing with our pursuit of back-office efficiencies,” the firm said.
Interim engineering earnings fell from $112m in 2014 to $101.7m, while turbine activities improved from a $0.9m loss to contribute $18.1m to the group.
The firm’s largest division, PSN, saw earnings fall to $133.1m from $161.9m.
However, CEO Bob Keiller said the firm which also announced a multi-million deal with Shell in Gabon was on track to hit full-year financial benchmarks set out by industry analysts.
He said: “With little prospect of short-term improvement in market conditions, we will focus on remaining competitive and protecting our capability, working with clients to reduce their overall costs, increase efficiency and safely improve performance.”
Shares in Wood group dipped in early trading.
They eventually closed up 0.35% at 581.5p yesterday.