Major oil and gas services provider Wood Group say growth at its recently acquired Pyeroy has fuelled a 15% rise in profits.
The FTSE 250 listed company acquired Gateshead-based Pyeroy in 2013 and contract renewals are benefitting its North Sea business.
In a message to shareholders Wood Group reported total revenue of $3,801.2m, up 10% in the six months ended June 30.
Group EBITDA at the international group dropped from $119.8m in the same six month period in 2013, to $108.8m.
A statement within the results read: “Our North Sea business has remained robust and is benefitting from growth in Pyeroy, acquired in July 2013.
“In the first half, we secured a five year renewal of the Talisman Sinopec engineering and maintenance services contract, an extension to our operations and maintenance contract with Chevron North Sea and also a new contract with independent Iona Energy.
“The increased focus on operator efficiency, with the UK oil and gas sector’s costs rising an estimated 15% last year, prompted us to cut contractor rates by 10% in May, reducing our overall cost to the customer and positioning us well for future opportunities.”
Wood Group attributed a EBITA growth of 47% in its Production Services business to its US shale activities, including those of Elkhorn, acquired in 2013.
Pyeroy Group Limited employs around 1,800 people at eight locations throughout the UK and Ireland.