Wood Group expects annual earnings to be in line with expectations

Oil and gas service company John Wood Group reported an expected decline in overall performances in 2015.

However, the company said the decline was anticipated and reflected the “relative resilience" of its business and it expected its full-year earnings to be in line with expectations.

In a statement on Wednesday, the FTSE 250 group said it aimed to reduce its costs by $30m (£19.1m) in the remained of 2015, adding it expected to deliver "strong cash flow" and that it had a strong balance sheet which provides security and flexibility.

Wood Group’s said its upstream division remain subdued, while its downstream division was performing well.

A decline in the rig count in the US combined with a reduction in contractor rates in the North Sea weighed on the group’s PSN division, which services brownfield operations, although Wood Group said there were longer-term opportunities in the sector.

Meanwhile, the company has secured a five-year deal worth $250m with oil giant BP, which will see the company deliver engineering, procurement and construction services to BP's 13 upstream offshore facilities in Trinidad.

Wood Group shares were up 2.21% to 715.50p at 09:33 on Wednesday.