April 25 British oil and gas services company
Amec Foster Wheeler Plc, which is being bought by John
Wood Group Plc, said its full-year losses more than
doubled as oil companies continued to delay or cancel service
"We continue to expect another year of decline in oil and
gas activity in 2017 and for solar activity to reduce
significantly from the record levels seen in 2016," CEO John
Lewis said in a statement.
Oil and gas producers have been cutting costs and delaying
projects and contracts, translating to lower demand for oilfield
services, with drilling activity yet to pick up after crude
prices tumbled from a peak of over $100 a barrel in 2014.
However, a recent uptick above $50 a barrel has
spurred output, especially in the United States, and Amec Foster
has been looking to capitalise on the rise in demand for U.S.
offshore and shale oil rigs.
The company's loss before tax widened to 542 million pounds
($693.8 million), compared with a pretax loss of 235 million
pounds a year earlier.
Amec Foster reported a 15 percent fall in its full-year
adjusted trading profit at 318 million pounds for the year ended
Dec. 31. Revenue of 5.44 billion pounds was in line with the
trading update provided by the company on March 13.
Shares in the company were down about 1 percent at 0833 GMT
on the London Stock Exchange.
($1 = 0.7813 pounds)
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha