John Wood, after reporting a 24 per cent dip in profit, said it looks forward to the end of the year. Several oil companies will be resuming their projects and put John Wood back to work full time.
The chief executive, Allister Langlands, said projects on the John Wood radar were backing up over the last four months.
The Wood Group who boasts BP and Total as customers, saw a pre tax profit of over 120 million dollars for the first half of the year compared with 161 million dollars during the same period last year. The group saw earnings per share at almost 16 cents, down from just over 21 cents during the same time last year.
Due to high performance in its well support operation, revenues rose over 10 per cent to 450 million dollars. Profits though, took a dip south thanks to hindered activity in the engineering and gas turbine services business.
Langlands said there was no reason for concern from the group in increasing regulation within the industry.
The company produces four per cent of its global revenues in the Gulf of Mexico, where a drilling ban still makes its presence known, since the accident on April 20 of this year. That accident killed 11 workers on the rig and helped cause the worst environmental disaster in US history.
Langland commented on the Gulf of Mexico, saying: “We don’t expect there to be any impact,” this year, ”greater rig regulation often leads to more engineering, not less.”
While the John Wood Group thinks that there is a great possibility of the costs of deepwater drilling to rise some, he expected them to rise only marginally and he expected only minor change.