Wood goes into a dive after profit warnings

Shares in Wood Group plummeted more than 10 per cent today after the energy services company warned of probable profit hits in two of its main divisions.

The 101-year-old business said its engineering business, which designs pipelines and oil rigs, pictured, at their earliest stages, would see a reduction in earnings next year of around 15 per cent.

That division generates about half of Wood’s total profit, but has been hit as oil companies cut spending on offshore projects.

Wood also expects earnings in its gas, steam and wind turbines business to be lower this year than in 2012. This is partly down to a lack of maintenance work as clients tighten their belts.

However, US shale gas and North Sea gas work remains a strength, “offsetting the reduction in Wood Group Engineering”, according to a company statement.