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Chairman leaves

Marchant one of three to step down from Wood board

Ian MarchantIan Marchant is stepping down as chairman of Wood Group, one of three directors leaving the board of the oil and gas company.

Corporate governance guidelines say a chairman should not remain in post beyond nine years from the date of first appointment to the board, other than for a limited time to help with succession planning.

He was first appointed a director in 2006 and, accordingly, he intends to resign as a director and chairman  within the next twelve months and until his successor is appointed.

Jann Brown has also indicated her intention to resign as a director and as chairman of the audit committee after five years in post.  She is resigning due to commitments to other executive responsibilities. The board intends to appoint an additional non-executive director to replace her as chairman of the audit committee.

Linda Adamany has given notice of her intention to resign, for personal reasons, as a director with effect from 1 May. She was appointed a director of Wood in October 2017, following the acquisition of Amec Foster Wheeler. Prior to that, she had been a director of Amec Foster Wheeler since October 2012. In line with its previously-stated intention to reduce the size of the board following the Amec Foster Wheeler acquisition, Wood does not intend to appoint a replacement for Ms Adamany.

Mr Marchant commented: “I would like to thank both Jann and Linda for their dedication to Wood. They have provided invaluable support to Wood at a time of significant development and we wish them the very best for the future. I have thoroughly enjoyed my time on the Wood board and feel I will be able to step down with the business in good shape with a sound platform for sustainable growth in the coming years.”

Annual results

Performance in 2018 was at the upper end of guidance and ahead of market expectations. Revenue excluding joint ventures was up 86% compared to 2017 due to the inclusion of a full year contribution from AFW.

Adjusted EBITA and Operating Profit before exceptional items benefitted from cost synergy delivery helping to offset a continued competitive pricing environment and a slower than anticipated sector recovery in oil and gas.

Operating profit before exceptional items is stated after non cash amortisation charges of $249m (2017: $141m) which includes $126m (2017: $32m) in respect of amortisation of intangibles arising on the acquisition of AFW.

The loss for the period was impacted by exceptional costs of $183m net of tax.

The company has proposed a final dividend of 23.7 cents, up 2% in line with its progressive dividend policy.

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