Shares of Aberdeen-based engineering and oil services giant Wood plc fell as much as 10% on Tuesday after it reported its 2018 full year results and announced big changes to its board.
Wood’s 2018 profit beat market expectations as the firm reported on the success of its 2017 takeover of smaller rival Amec Foster Wheeler and increased revenue synergies from the deal.
Wood said Ian Marchant intends to resign as a director and chair of the board within the next 12 months.
The firm also said Jann Brown has indicated her intention to resign as a director and as chair of the audit committee “due to commitments to other executive responsibilities.”
Further, Wood said Linda Adamany will resign, for personal reasons, as a director from May 1, 2019.
Wood said it had secured contracts worth over $600 million following the Amec Foster deal — winning business as a combined group that neither company would have been able to do on a standalone basis.
Wood’s 2018 adjusted earnings before interest, taxes and amortisation rose 5.4%, on a pro forma basis, to $630 million — above a company-supplied analyst consensus estimate of $624 million.
Revenues grew 79% in 2018 to $11 billion, including the impact of acquisitions and disposals.
Wood plc CEO Robin Watson said of the results: “Wood delivered good organic growth in 2018.
“We completed the integration of AFW at pace, increased cost synergy targets by 24% and unlocked new opportunities across our broader range of capabilities and sectors to secure revenue synergies of over $600m.
“We have delivered strong operational cashflow which has supported both a reduction in net debt of $450m since completion of the acquisition of AFW, and the payment of $231m in dividends in 2018.
“We have built a unique platform and are in the early stages of what we can achieve.
“Our performance in 2018 has strengthened our conviction in Wood’s potential and we are excited about our prospects. We are confident of achieving further growth in 2019.”
Marchant said: “I would like to thank both Jann and Linda for their dedication to Wood.
“They have provided invaluable support to Wood at a time of significant development and we wish them the very best for the future.
“I have thoroughly enjoyed my time on the Wood board and feel I will be able to step down with the business in good shape with a sound platform for sustainable growth in the coming years. ”