Wood Group (WG) said it expects its earnings for the year to be 20% lower than 2015 as it continues to manage costs amid lower activity by operators.
The company said the challenging market in the North Sea has continued with “additional pressure” on margins.
WG said it further reduced contractor rates in February as a result of the challenges as it looks to reduce its cost base.
In a statement, it said it had won contract renewals with both Taqa and Nexen while Shell awarded the company a three year contract for maintenance and construction to work on eight of its North Sea assets.
Meanwhile, in the Americas, the firm said it expected its acquisitions of Kelchner and Infinity in the region to help offset weaker performances in its underlying US shale business.
In Upstream WG has continued to provide follow-on and operating support services on Det Norske, Ivar Aasen and Hess Stampeded as well as commencing work on our six year $400million maintenance and modifications contract with Statoil in Norway.
In Subsea, Wood Group said it continued activity on projects such as BP Shah Deniz and also progressed to the detailed phase of the Greater Western Flank Phase 2 project for Woodside in Australia.
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