Oil and gas services company Amec Foster Wheeler says it faces "very challenging conditions" in the coming months but insisted that it would meet its profit target for 2016.

The firm reported revenues of £2.8bn (€3.3bn; $3.6bn) for the first six months of the year, a 6% increase from the same period in 2015.

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It posted a loss before tax of £446m, mainly due to one-time asset writedowns of £440m, compared to a profit of £73m last year.

Amec Foster Wheeler chief executive Jonathan Lewis said he intended to see through a review of the company's strategy while 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 January, the London-based company moved to cut pay rates for hundreds of Aberdeen-based contract workers.

"Our industry continues to face very challenging conditions, with capital projects across natural resources markets being delayed and cancelled in many parts of the world," Lewis said in a statement.

"Despite this, we continue to benefit from the diversity of our platform and we remain on track to deliver the operational guidance we gave at the beginning of the year.

"I have initiated a wide-ranging review of the strategy, our organisation structure and cost base – which we are now part-way through. I expect to update investors on these issues in the autumn."

Oil