It’s a story of two different halves for Aberdeen-based oil-to-renewables conglomerate Wood Group.
In its Western half, there has been ‘robust activity’ in the first half of this year.
But the improved performance in offshore greenfield project engineering and commissioning in North America is being more than offset by weaker activity in the East, where there has been a further reduction in projects and modifications work – particularly in the North Sea.
A Wood Group spokesman said: “Trading in the first half of this year is materially down on the same period in 2016, principally due to a significant reduction in projects and modifications work, particularly in the North Sea.
“In Projects & Modifications, we have seen a significant reduction in brownfield modifications and upgrade work in the North Sea. In May, we were awarded the modifications work for the Shell Brent decommissioning scope.
“Operations and Maintenance is also down but is less impacted.
“The impact of the tougher pricing environment in 2016, partially offset by the enduring benefit of structural cost reductions achieved in the last two years, will result in a reduction in first half margin as expected.”
“We are more cautious on the full year outlook but anticipate a stronger second half.”
Full year profits are forecast to be some $330 million.
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