Profits at offshore oil and gas services giant Wood Group slumped from $45 million in the first half of last year to just $6 million in the same period in 2017 – a fall of 86.7%
Total income over the six months to 30 June 2017 dropped by 11% to $2,277 million but Wood managed a 3% increase in its dividend to 11.1 US cents after cutting costs by $44 million compared to 2016.
Wood Group spent $25 million in taking over Amec Foster Wheeler, but expects to make savings of at least $170 million from the combined group.
A strong performance in its ‘Western’ business (ie Americas) – including improved activity in offshore greenfield project engineering and commissioning and modest improvement in US onshore activity – was dragged down by a poor performance in its Eastern (ie North Sea).
Robin Watson, Chief Executive, Wood Group, added: “The North Sea market is particularly challenging, with significant reduction in projects and modifications work.
“But our full year outlook is unchanged and we anticipate a stronger second half performance.
“In June shareholders overwhelmingly approved our offer for Amec Foster Wheeler which will accelerate our strategy to create a global leader in project, engineering and technical services across a broad range of industrial sectors, the largest of which will be oil and gas. We remain on track to complete the transaction in the fourth quarter.”
23 Aug 2017