Aberdeen's Wood opts to offload £1 billion 'built environment' business following review

Wood, the Aberdeen-headquartered energy and engineering services giant, is to sell its built environment business following a review of the operation, which employs thousands of staff.

In November, the group kicked off a strategic review of the part of its consulting business facing the built environment end market, accounting for around 70 per cent of consulting revenue. The business generated revenue of about $1.3 billion (£950 million) and adjusted underlying earnings of $150 million in 2021.

News of the proposed disposal came as Wood said 2021 revenue and adjusted earnings before interest, taxes, depreciation and amortisation were in line with its expectations.

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The firm, which operates in more than 60 countries, employing some 40,000 people, told investors: “The strategic review has considered a range of options to best deliver value for our shareholders and to strengthen the group.

Wood chief executive Robin Watson: 'The board has concluded that a sale of our built environment business is the best option to deliver value for our shareholders.'

“The board has concluded that a full sale process for the built environment business is the best option and this process is underway. A sales agreement is expected to be announced in [the second quarter].

Chief executive Robin Watson said: “2021 saw improving momentum across our businesses, against a backdrop of continued challenging market conditions. Together with significant growth in our order book, this enables us to start 2022 confident that activity levels are improving.

“The board has concluded that a sale of our built environment business is the best option to deliver value for our shareholders. It will also strengthen the group as we look to capitalise on the significant opportunities ahead of us, including in energy transition and industrial decarbonisation.”

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