Shares of Wood Group PLC (LON: WG.) soared more than 10% on Tuesday despite net losses for the first six months in a further confirmation that the pandemic created havoc in the oil industry.
Wood Group said profit tumbled 20.6% for the first six months ending June 30. The company that offers oil services posted a net loss of $10.5 million, and therefore swinging to a loss from a profit of $13.1 million.
Revenue fell 15% to $4.09 billion, dragging operating profit before exceptional items down by 40% to $101 million. However, the firm is still positive as far as its second half of the year performance is concerned.
“We are benefitting from our broader market exposure and have seen relative resilience in two thirds of our revenue which is derived from chemicals & downstream, renewables and built environment markets,” chief executive Robin Watson said.
“Our objectives are to maintain full year margins in line with 2019 and deliver strong cashflow to further reduce debt in the second half”.
Wood Group share price gained more than 10% earlier in the morning before paring back gains to trade over 6% in the green.