Wood owned 51% of Ethos Energy, a joint venture set up in 2014 in conjunction with Germany’s Siemens. Ethos manufactures turbines and other rotating equipment for the industrial sector.
Wood has struggled to cut its borrowing levels since its £2.2 billion acquisition of London-based Amec Foster Wheeler in 2017. The group is now in the middle of a three-year turnaround strategy under the leadership of Ken Gilmartin, who has spent much of his time fending off takeover attempts since becoming chief executive in July 2022.
Mr Gilmartin said Wood was pleased to complete the sale to One Equity, a private investment group headquartered in New York.
“This strategic divestment is part of our strategy to be selective and focused on our core business,” he added. “We will continue to align our portfolio as part of our commitment to simplify Wood.”
In its third quarter trading update issued in November, Wood reported a 1% increase in revenues which reached nearly $1.5 billion during the three-month period. However, year-to-date revenue was approximately 3% lower at $4.3bn due primarily to reduced activity in its projects division.
In response to concerns raised by its auditor, Wood has commissioned an independent review by Deloitte that will focus on reported positions on contracts in the projects business, accounting, governance, and controls. This will include consideration as to whether any prior year restatement may be required.
Despite this, the energy services group maintained its full-year outlook of high single-digit growth in adjusted earnings before the impact of disposals. Net debt for the full year is expected to be similar to that of $694m as of the end of 2023.
Shares in Wood were roughly 4% higher at 68.4p in mid-day trading following this morning’s announcement.
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