Wood Group cut 8,000 jobs last year
Oil and gas services firm Wood Group has revealed it cut 8,000 jobs last year as it battled to slash costs amid the global slump in commodity prices.
Oil and gas services firm Wood Group has revealed it cut 8,000 jobs last year as it battled to slash costs amid the global slump in commodity prices.
The Aberdeen-based firm said it cut 20% of its workforce last year, which included 2,000 jobs in the UK, as well as losses in the US and the Middle East as it made savings of 148 million US dollars (£105 million).
It said the lion's share of the cuts came from its core production services division, which shed 6,000 jobs.
Overall, the firm said earnings fell 14.5% to £469.7 million in the year to the end of December compared to a year ago, as the energy industry cut back on spending across the globe.
However, shares jumped more than 7%, as investors thought the FTSE 250 business is tackling costs in a difficult environment.
Oil prices have fallen by some 70% since their peak in the summer of 2014, and Wood Group added there is now an "expectation of a lower-for-longer commodity price environment''.
It said capital spending across the industry fell by around 20% last year, with a further reduction anticipated in 2016, which would lead to the first consecutive annual declines in the sector in more than 20 years.
The firm said "challenging market conditions'' in the second half of last year continued into the first quarter of its current financial year.
Chief executive Robin Watson said: "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.''
Analysts at Liberum said: "Wood Group has reported a relatively resilient performance. Good results, given the environment.''