Wood Group Scores Gabon Deal after Tough First Half
Wood Group announced Tuesday that it has received a multi-million dollar contract with Shell for work in Gabon as the UK-based oilfield engineer announced reduced revenues and profits for the first half of 2015.
The deal with Shell will see Wood Group PSN supply engineering, construction and industrial services to Gabon's onshore Rabi, Gamba, Toucan and Koula fields. The award represents Wood Group PSN's first major contract in Gabon and will provide employment opportunities for around 200 Gabonese nationals, the firm said.
In its second-quarter results statement, Wood Group announced that its first-half revenue was down 19.3 percent at $3.1 billion (1H 2014: $3.8 billion), while its profit at the EBITDA level fell 7.4 percent to $225.9 million. (1H 2014: $244 million).
Wood Group said that conditions in the oil and gas market "remain very challenging". This has resulted in headcount reductions so that group headcount is down 13 percent on December and down 17 percent on June 2014. A spokesperson for the firm told Rigzone that worldwide headcount, including group services and joint ventures, was approximately 36,000 at the end of June this year.
As a consequence of these cuts Wood Group achieved $40 million of cost savings during the first half, ahead of expectations.
As well as the Gabon deal announced Tuesday, Wood Group noted that it has recently secured new long-term awards in the North Sea as well as in Saudi Arabia and Mexico.
CEO Bob Keiller commented that the firm's performance in the first half "demonstrates our commitment to cost discipline and resilience and flexibility" of its business model.
He added: "With little prospect of short term improvement in market conditions, we will focus on remaining competitive and protecting our capability, working with clients to reduce their overall costs, increase efficiency and safely improve performance."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension