Oil and gas services supplier Wood Group (LON:WG. predicted worse first results than a year ago but unveiled a US$250mln North Sea deal.
Wood said first-half performance would be down on the same six months in 2014 due to tough oil and gas markets, as falling oil prices weigh on industry investment.
Exploration activity by oil companies remained subdued, but Wood had benefited from big engineering projects including Det Norske’s Ivar Aasen in the Norwegian North Sea and Hess Stampede in the Gulf of Mexico.
In the Americas, it said reduced demand and pricing pressure in capital spending-related activities continued to affect the US onshore market.
In the North Sea, it was keeping up a leading position in maintenance and brown-field engineering work and had good visibility under longer-term contracts.
In its international business, longer-term contracts in Australia and Asia Pacific were progressing and it envisaged several short-term growth opportunities in the Middle East and Africa.
A spokesman said: "To help offset the impact of lower activity and pricing pressure, we are delivering savings significantly in excess of original targets from our cost reduction initiatives.
"There is no change to overall guidance and we continue to anticipate full-year pre-tax earnings before interest and amortisation will be broadly in line with analyst consensus."
Wood also said it had agreed a US$250mln deal with Antin Infrastructure Partners to provide operating services for the Central Area Transmission System in the North Sea for up to 10 years, subject to regulatory and other consents.
Shares in Wood rose 1.5p to 681p shortly after midday in London.
Deutsche Bank, which has a 'buy' recommendation on the stock with an 805p target price, said it would be focusing on the timing of project approvals and Wood's ability to save more money "to offset what is likely to remain underlying weakness in 2016".