Wood Group cuts 13pc jobs

Energy services giant Wood Group reports it has slashed group headcount 13 per cent since December in what was a “very challenging” first half for oil and gas.

Pre-tax profit for the first six months of this year was $160.2m (£102.9), down from $233.3m a year earlier.

Revenue was down 19 percent at $3.07 billion over the same period.

“With little prospect of short term improvement in market conditions, we will focus on remaining competitive and protecting our capability, working with clients to reduce their overall costs, increase efficiency and safely improve performance”.

Top oil contractor Wood Group has been forced to slash thousands of jobs as tumbling commodity prices continue to ravage key North Sea producers.

Yet directors said their outlook for 2015 overall remained unchanged and that full year earnings before interest, tax, dpereciation and amortisation (EBITDA) will be in line with analyst consensus, giving them confidence to stick to their previous promise and lift the dividend to 9.8 cents. It added that total cost savings for the full year would be in excess of $80m.

The company said it was taking measures to offset the impact of reduced investment by customers and pricing pressure.

The action, equivalent to an employee reduction of about 5,000, mirrors plans by several oil services groups and explorers as crude prices have tumbled by more than half in value over the past year.

The slump in the global oil price has hit the UK’s offshore industry particularly hard, with costs involved in keeping its ageing offshore platforms continuing to grow.