The ongoing global crude oil price slump dragged down profits at the Aberdeen-based multinational oil services operator Wood Group by 14.5% in 2015.
Against a backdrop of ‘significantly reduced’ customer activity, the Wood Group delivered pre-tax profits of $470 million – which the company claimed was ‘in line with expectations’ – compared to $549.6 million in 2014.
In his annual review statement, Ian Marchant, Chairman, said: “During 2015, we focused on supporting the executive leadership team in its response to a tough trading environment.
“Overall, the company performed in line with expectations, benefiting from the flexibility of an asset-light model and the delivery of significant and sustainable overhead cost savings, while continuing to invest in strategic acquisitions and organic growth.
“Conditions in oil & gas markets became increasingly challenging in 2015 as <crude> oil prices fell by around a further 30% and E&P capital expenditure was down approximately 20%.
“The expectation of a lower-for-longer commodity price environment has prompted many global E&P customers to reassess capex and opex spending plans.
“Industry commentators are anticipating further spending reductions in 2016, which would represent the first consecutive annual declines in spending in more than 20 years.”
Last week, Wood Group declared that it would cut contractors’ pay rates by 9%
Scottish Energy News 19 Feb 2016