LONDON, Feb 19 (Reuters) - Oil services provider Wood Group said on Friday it would cut the wages of around 200British contractors by nine percent, the company's thirdreduction of contractor pay in nearly two years as weak oilprices have weighed on revenue.
The pay cut applies to a third of around 600 UK-basedcontractors employed by Wood Group PSN, a subsidiary whichspecialises in oil field commissioning, maintenance andconstruction work, the company said.
"We believe it is the right (decision) to proactively meetthe continuing cost and resourcing challenges affecting the UKNorth Sea oil and gas sector," said James Crawford, WGPSN's UKand Africa managing director, in a statement.
The latest contractor rate cut follows two 10 percent wagereductions in December and May 2014.
Wood Group, which will publish full-year earnings onTuesday, reported a 7.4 percent fall in core profits in thefirst half of 2015 as its oil company clients have reducedspending amid a 70 percent fall in crude prices since mid-2014. (Reporting by Karolin Schaps; editing by Adrian Croft)
Wood Group (J) (WG.)