Profits plunge 86pc at oil services firm

PROFITS at Wood Group have tumbled 86pc as work in the declining North Sea basin dries up.

The Aberdeen-based oil field services provider made £4.7m during the first half of the year compared to £35m during the same period last year, with revenue falling 11pc to £1.7bn.

The North Sea has been hit by the global slump in the oil price but also majors shifting their attention as the basin declines.

Wood Group has been cutting costs in response, with overheads down by £34m compared to the half-year last year and staff cut by 34pc since the start of 2015.

Profits were also hit by exceptional costs including advisory and underwriting fees of £20m over its ongoing purchase of rival oil field services group Amec Foster Wheeler. But bosses said they were confident of a stronger performance in the second half.