Aberdeen-based oil and gas services giant Wood Group (
www.woodgroup.com)has reported that its profits declined by about 25% last year due to “challenging” conditions in the energy sector.
It said that its underlying earnings, before interest and tax, declined to $363 million (£292 million) in 2016 — down from $470 million in 2015, but broadly in line with City forecasts — while its total revenues fell by 15.7% to $4.9 billion.
Despite the drop in earnings, chief executive Robin Watson said that the group’s financial performance was “in line with expectations in the face of a tough oil and gas market”.
He added: “Results benefited from the robust management of utilisation and costs and one-off benefits. We are re-positioned to enhance customer delivery, and we are encouraged by their support for our services, albeit in a competitive pricing environment.
“The oil and gas market continues to present challenges, and we remain cautious on the near-term outlook.”