Wood Group warns on oil sector spend

WOOD Group, the oil services giant, warned yesterday that the recent rise in crude oil prices had not led to a rise in investment in the sector.

Aberdeen-based Wood, which manages drilling and development of oil and gas projects worldwide, said its outlook has not changed since its AGM.

In May the company warned that it expected worldwide spending on oil exploration and production to fall by up to 15 per cent this year.

But despite investment remaining depressed, the group is optimistic about its prospects.

"We believe the longer term market fundamentals for our services and products remain strong and we are continuing to extend our services and broaden our international presence to ensure we are well positioned to resume good growth as the energy market recovers," the company said in a statement.

Wood Group will report its results for the six months to 30 June on 26 August.

Shares closed up 2p at 269p.