(Reuters) - British oil and gas services company Amec Foster Wheeler Plc (L:AMFW), which is being bought by John Wood Group Plc (L:WG), said its full-year losses more than doubled as oil companies continued to delay or cancel service contracts.
"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 (LCOc1) 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, compared with a pre-tax 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.