UK-based Wood Group has warned that its full year 2016 adjusted earnings could fall by as much as 20 percent.

According to Marketwatch, Wood Group expects 2016 earnings before interest, taxation and amortization to fall 20 percent year-over-year.

That decline is in line with analyst targets that expect the company to post a full year 2016 EBITDA of $377 million, the BBC said.

“Year to date financial performance, although down on 2015, continues to benefit from the breadth of our offering, our focus on management of utilization in response to demand, and structural overhead cost savings,” Wood Group told BBC.

Wood Group’s fiscal year ends on December 31, 2016.

The company expects to issue a trading update for the first half of the year on June 30.

Wood Group posted $5.85 billion in 2015 total revenues and a $320.2 million profit before tax for the full year.

EBITDA for the full year of 2015 came in at $469.7 million, down 14.5 percent year-over-year.

Wood Group is reportedly preparing to cut as many as 300 office jobs at its North Sea operations.

According to the Telegraph, the company is expected to start talks with 1,000 UK-based onshore employees this week as it plans to cut 300 North Sea jobs.

The company is also currently in talks with union representative to trim offshore worker pay for the third time in about two years, the paper added.

Wood Group has not disclosed any information about the potential job cuts.

Wood Group said Monday that it has secured two new, three year contracts, collectively valued at over $140 million, to deliver technical services and expertise to the Iraq Oil Corporation (IOC) in Iraq.

Wood Group PSN will provide brownfield front end engineering design, detailed engineering, project management, procurement services, system completion and commissioning support for operations and start-up on a significant onshore asset in southern Iraq as part of the  two contracts.

The contract is effective immediately and will create more than 100 new jobs, the company said.

The contracts will be delivered from southern Iraq and Dubai, where WGPSN established an office in 2015.

Wood Group was also awarded a five-year contract by Nexen Energy at the end of April valued at $150 million.

The contract extends a contract that has been in place since April 2010.

Wood Group PSN will continue to deliver operations, maintenance and technical support across Nexen’s North Sea offshore assets: the Buzzard, Scott and Golden Eagle platforms.

More than 190 jobs are retained under the contract and the contract is effective immediately, the company said.

Wood Group has not disclosed if the contract win will impact its headcount reduction plans.


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