Its asset life cycle solutions east division was hit by significant reductions in projects and modifications work, particularly in the North Sea.
During a conference call with analysts and investors, Mr Watson said lower levels of North Sea activity was still the biggest challenge for Wood Group.
Mr Watson said Wood Group had a good track record of working with new entrants to the North Sea, citing Ancala Midstream Acquisitions as an example.
Last year, Wood Group said it had been lined up by Ancala to be its operating partner for the Scottish Area Gas Evacuation system and Beryl pipeline.
In May, the firm won a contract to support Shell with the retirement of its Brent Bravo platform in the North Sea, securing 150 jobs in the process.
- Wood Group profits plummet ahead of Amec takeoverTelegraph.co.uk
- Wood Group profits tumble 77% as North Sea oil work dries upFinancial Times
- Wood Group profits slide on Amec acquisition costsThe Scotsman
- Wood Group reports 77% drop in half year profits amid Amec acquisitionAberdeen Evening Express
- Wood Group earnings fall more than forecast amid tough North SeaDIGITALLOOK
- Wood Group half-year profit falls 86.7 percent on exceptional costsReuters UK
- John Wood earnings fall, raises interim dividendMarketWatch
- Wood Group profits waneUpstream Online
- Duqm Refinery, Amec Foster Wheeler ink PMC deal for EPC phaseArabianOilandGas.com
