independent.co.uk
Wood Group Shares Plummet Amidst Business Review
Wood Group's shares hit a 20-year low after announcing a business review following project write-downs and failed takeover bids.
English
United Kingdom
Labour MarketEnergy SecurityStock MarketCost-CuttingTakeoverCompany PerformanceFinancial Review
Wood GroupDeloitteSidaraApollo
Ken Gilmartin
- What caused Wood Group's share price to plummet?
- Wood Group's shares plummeted to a 20-year low after announcing a Deloitte-led review of its business, focusing on contract positions, accounting, and governance. This follows recent write-downs on projects and failed takeover attempts.
- How did Wood Group's latest trading quarter perform?
- The company reported a disappointing quarter with lower underlying earnings than the previous year, due to project setbacks in chemicals, minerals, and life sciences. Revenues were slightly up, but overall performance was deemed weak.
- What cost-cutting measures is Wood Group undertaking?
- Wood Group is implementing cost-cutting measures, aiming to reduce annual costs by approximately $60 million. This is in response to the underperformance of their projects business.
- What is the purpose of the independent review commissioned by Wood Group?
- The review aims to determine if any prior-year restatement is needed, addressing concerns about accounting practices and contract reporting. The results of the review will be shared as appropriate.
- What are some factors that have negatively affected Wood Group's share price and investor confidence?
- Multiple failed takeover attempts, including proposals from Sidara and Apollo, have contributed to investor concern and share price volatility. The company's financial struggles have further shaken investor confidence.