Aberdeen's Wood achieves 2022 results 'in line with expectations' in 'year of major change'

Aberdeen-headquartered energy and engineering services giant Wood has reported higher revenues and widened losses in annual results seen as evidence of “why potential suitors can see value in the business”.

The FTSE 250 firm has posted a 4 per cent jump in revenue before exceptional items for 2022 of $5.4 billion (£4.3bn), saying growth in its consulting (up 4 per cent) and operations (up 15 per cent) arms was offset by the expected decline in projects (down 6 per cent). Core earnings retreated by just under 5 per cent to $385 million, but Wood – which earlier this month said it had received another takeover bid from Apollo Global Management – said that was at the top end of guidance given in January, while its operating loss widened to $568m from £62m.

Chief executive Ken Gilmartin – whose appointment was announced in June – said: "We are pleased to have delivered results in line with expectations for 2022… This was achieved in a year of major change for the group, under new leadership, as we addressed legacy issues, transformed our balance sheet, and launched a new strategy. We now look to the future with confidence as a much stronger company.”

Stuart Lamont, investment manager at RBC Brewin Dolphin, said: “While most of the attention in the build-up to these results was about recent bids for Wood, the operational story for the company has not changed dramatically… Apollo’s bid of 237p is substantially higher than Wood’s current share price and, while [the latest] results show the company still has some work ahead of it, they also underline why potential suitors can see value in the business.”