Wood Group delays results over legacy issue
Shares in energy services company Wood Group tumbled by more than 16% after it announced it was taking a $100m exceptional charge on a legacy issue and delaying its annual results.
The Aberdeen-based company said the provision related to a legacy issue, Aegis Poland, that pre-dates its acquisition of Amec Foster Wheeler in 2017.
The FTSE 250 group said the construction of various buildings to house the Aegis Ashore anti-missile defence facility for the US army was about 90% complete by value at the end of December and is expected to be operationally complete in the second half of the year.
The company said in order to finalise its reported results and to conclude the year-end audit process with KPMG, its auditor, an external investigation and review is being undertaken, leading to a delay in publishing its figures previously scheduled for 8 March.
The board said it is expecting an exceptional charge of c. $100m in relation to Aegis Poland.
Wood said a further announcement will be made when the date is confirmed, adding that “underlying results for FY21 are expected to remain unchanged from our trading update on 13 January 2022.”
Management’s latest estimate is that the loss at completion will be $222 million.
Shares in the company closed 36.55p (16.22%) lower at 189p.