Wood Plc said on Wednesday its Chief Executive Officer Robin Watson plans to retire and the British oilfield services and engineering firm also posted a drop in full-year revenue, sending its shares down as much as 6% in early trade.
The London-listed company's revenue for the year ended Dec. 31 was down 14% on a like-for-like basis, with operating profit before exceptional items down 10.3%.
Wood has been looking to turn around its business after a slump in oil prices during the pandemic pummelled the industry, with many customers cutting contracts to save cash. New coronavirus variants are also casting doubts on recovery trajectories.
The company said in February it will incur a charge of about $100 million related to its Aegis Ashore missile defense site in Poland.
Wood has also previously sought to sell its consulting business. "The sale process of our Built Environment business is progressing well," outgoing CEO Watson said on Wednesday. Read full story
The sale will be essential to improve the company's balance sheet, as Wood expects its cash performance for the coming year to take a hit from higher costs, J.P. Morgan and Jefferies analysts said.
(Reuters - Reporting by Radhika Anilkumar in Bengaluru; Editing by Shounak Dasgupta)