Shares in international oil and mining service firm Cape plunged yesterday to their lowest in more than three years after it sent out a stark profit warning.
The company, which has offices in Aberdeen and employs about 1,200 people in the North Sea, said trading in its Far East/Pacific Rim region business was well below previous management expectations.
A “sharp deterioration” in its onshore business in Australia driven by lower revenue and increasing pricing pressure had led to significantly lower operating margins.
Cape, which employs 19,000 people globally, said a review of the region’s business structure was under way following an initial attempt to reduce overheads.
Shares fell 35.5% yesterday to 187p.
It said its UK region continued to trade strongly, supported by long-term maintenance contracts, while the Middle East showed good growth albeit at lower margins.