Troubled Aberdeen energy firm Wood has kicked off 2025 with a positive development, announcing the completion of its previously revealed sale of its stake in Ethos Energy Group Limited.
The transaction, which closed on December 31, 2024, has resulted in a substantial cash injection of £110 million for the company.
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Wood, which owned 51% of the Ethos Energy joint venture, sold its stake to private equity firm One Equity Partners.
Ethos Energy, established in 2014 and also based in Aberdeen, specialises in rotating equipment and employs approximately 3,600 people globally.
Ken Gilmartin, chief executive of Wood, commented on the sale:
“We are pleased to complete the sale of Ethos Energy to One Equity Partners. This strategic divestment is part of our strategy to be selective and focused on our core business. We will continue to align our portfolio as part of our commitment to simplify Wood.”
The deal includes £33.6 million of previously planned loan notes, which have been replaced by additional cash consideration.
This sale is part of Wood’s broader simplification programme, which Mr. Gilmartin stated will deliver annual savings exceeding £40 million.
This positive news comes after a challenging year for Wood in 2024, during which the company faced several setbacks, including job cuts, a collapsed takeover deal, and significant financial losses.
Despite these difficulties, Wood’s full-year outlook for 2024 remains optimistic, with expectations of “high single-digit growth” supported by a strong performance in the fourth quarter.
The completion of this joint venture sale marks a promising start to 2025 for Wood, as the company continues its efforts to streamline operations and focus on core business activities.
