(Reuters) - Oilfield services company John Wood Group Plc (>> John Wood Group) said fewer projects and modifications work, particularly in the North Sea region, weighed on its first half, while impact of a tougher pricing environment would result in a reduction in the first-half margin.

The company, which provides services to oil producers including BP Plc (>> BP), said it was cautious about its full-year outlook, but anticipated a stronger second half.

"First half performance is down on 2016 and weaker than anticipated," John Wood Group said in a statement on Thursday.

The company, however, said activity in the U.S. onshore shale market had improved since the beginning of the year, and that it had secured infrastructure construction projects in Ohio.

Oil companies have cut back on spending for exploration drilling and maintenance, reducing demand for engineering firms such as John Wood Group which provides services including overhaul of compressors, pumps, generators and rotating equipment.

(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha Gayathri)

Stocks treated in this article : John Wood Group, BP