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Wood Group reports earnings of $470million in 2015

Robin Watson, chief executive of Wood.
Robin Watson, chief executive of Wood.

Wood Group, the Aberdeen-based oilfield services firm, has reported earnings of $470million in 2015, down from $550 in 2014, saying its performance demonstrated resilience and flexibility in challenging markets.

The company, which announced its 2015 full year results today, saw total revenue fall to $5.8billion in 2015, down 23% from $7.6billion in 2014.

Eearnings before interest, tax and amoritisation of $470million marked a drop of 14.5%.

The pre tax profit, before exceptional items, of $320million is down 22.8% from the $414.5 it made in 2014.

Total dividend has increased by 10% to 30.2 cents per share. It said its intention remains to increase the dividend for 2016 by a double digit percentage.

Chief executive Robin Watson said: “Against a backdrop of significantly reduced customer activity, the Group delivered EBITA of $470m in line with expectations and 14.5% lower than 2014.

“Our continued actions to reduce costs, improve efficiency and broaden our service offering through organic initiatives and strategic acquisitions, position us as a strong and balanced business in both the current environment and for when market conditions recover.”

The firm has reduced its underlying headcount by more than 8,000, approximately 20% of its workforce.

Last week, it announced it cut contractor rates by a further 9% following two 10% cuts.

Group chairman Ian Marchant said: “Conditions in oil & gas markets became increasingly challenging in 2015. During the year, oil prices fell by around a further 30% and E&P capital expenditure was down approximately 20%.

“The expectation of a lower-for-longer commodity price environment has prompted many global E&P customers to reassess capex and opex spending plans.

“Industry commentators are anticipating further spending reductions in 2016, which would represent the first consecutive annual declines in spending in more than 20 years. In other markets we have seen more resilient demand for our services.

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