Oil services company Wood Group has reported a 39% drop in profits in the first six months of the year.

The company posted profit before tax of $95.5m (£74m) in the January to June period, down from $156.3m in the same period a year ago.

Wood Group chief executive Robin Watson said the change "reflects the balance of a challenging oil and gas market, our continued focus on utilisation and cost management and the benefits of our flexible, asset light model".

The Aberdeen-based firm expects its full-year earnings to be 20% lower as oil prices continue to stay depressed.

Tens of thousands of people working in the North Sea oil industry have lost their jobs over the past 18 months due to the collapse in crude prices.

In May, Wood Group announced that it would slash 300 onshore jobs in the UK.

Its revenue fell 17% to $2.5bn in the first half of 2016.

"Looking further ahead, we see early indications of modest recovery in some areas and believe our customer relationships, geographic footprint, strong financial footing and relentless focus on delivering value through our asset life cycle services and specialist technical solutions, position us well," Watson said in a statement.