Bigger-than-expected losses on a pipeline maintenance contract in Oman took the shine off a 56 per cent rise in interim profits at Wood Group.
The Aberdeen-based energy service firm posted a profit of $160 million (£102m) for the six months to 30 June thanks to a strong performance at its engineering division, including deep-water work in the Gulf of Mexico.
But the firm said it was “actively working to improve performance on our long-term contract in Oman” after saying it would book full-year losses of $15-20m, with $10m coming in the first half.
Analysts said the Oman problems “detract” from an otherwise low-risk profile for the FTSE 250 firm.
Sanjeev Bahl, an analyst at Numis Securities, noted: “Strong performance in core markets such as the North Sea and North America helped drive growth, but was offset by continued losses in Oman.”