The oil and gas market has continued to present challenges and the company’s year to date performance is down on 2016, shareholders in the Wood Group – the Aberdeen-based oil-to-renewables conglomerate – were told at its annual meeting yesterday.
A spokesman said: “Improved activity levels in offshore greenfield project engineering and commissioning in north America have been more than offset by weaker activity elsewhere including further reductions in North Sea projects and modifications work.
“Overall we are seeing lower activity and the impact of competitive pricing on contracts renewed over the last 18 months
“Our Industrial Services business has performed robustly and automation activity has increased. Overall, year to date performance has been weaker than anticipated.
“However, recent contract awards and renewals demonstrate good customer support and we are seeing the enduring benefit of structural cost reductions achieved in 2016. We anticipate stronger performance in the second half of the year and as a result, management’s expectations of full year trading performance are broadly unchanged.”
Meanwhile, Parkmead Group – the Aberdeen-based oil and gas minnow – has doubled its stake in a key North Sea gas field.
It has acquired Verus Petroleum’s 50% stake in the North Sea Licence P.2209 which contains the Farne Extension prospect and a further four prospective leads. Parkmead – which already holds a 50% stake in the field – says it has the potential to contain 175 billion cubic feet of gas initially in place on a most likely, P50 basis.