Wood Group PLC has announced a mixed financial year for 2024, triggering new plans to become more stable.
While their adjusted earnings are as expected, a weaker final quarter meant bonuses for executives and staff were cancelled.
Despite a healthy order book worth $6.2 billion, the company predicts they will spend more money than they earn in 2025.
This is due to poorer trading and the costs of an independent review. To save money, the company’s cost-cutting measures could potentially include staff reductions as they work to streamline their operations.
Chief Executive Ken Gilmartin admitted the situation was difficult, stating: “This is a difficult announcement amid our transformation. While we have made progress, I am disappointed in our financial performance.”
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He added that they are taking strong actions to deal with these problems and take advantage of opportunities in growing energy markets.
Wood Group plans to save around $145 million annually by 2026 through a simpler way of working. An independent review is also underway to improve how the company is run financially.
Gilmartin remains optimistic, pointing to the company’s position in growing markets and the high demand for their engineering skills. The company is also looking at how to refinance its debts, which are due in 2026.
