Energy divestment

Wood shares soar as division put up for sale

Robin Watson
Robin Watson: improving momentum (pic: Terry Murden)

Shares in energy services company Wood Group rocketed 20.48% after the consulting and engineering company said it was selling its built environment division and reported a fall in core profit.

The Aberdeen-based company launched a strategic review of that part of its consulting business in November and the board yesterday said it has decided to find a buyer .

The Built Environment business generated revenue of around $1.3 billion and adjusted EBITDA of around $150 million in 2021.

The company said: “The strategic review has considered a range of options to best deliver value for our shareholders and to strengthen the group. The board has concluded that a full sale process for the Built Environment business is the best option and this process is underway. A sales agreement is expected to be announced in Q2.”

News of the proposed disposal came as Wood said 2021 revenue and adjusted earnings before interest, taxes, depreciation and amortisation were in line with its expectations.

Chief executive Robin Watson said: “2021 saw improving momentum across our businesses, against a backdrop of continued challenging market conditions.

“Together with significant growth in our order book, this enables us to start 2022 confident that activity levels are improving.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.