Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Wood services still ‘very focused’, chief executive says

Robin Watson, chief executive of Wood.
Robin Watson, chief executive of Wood.

Wood chief executive Robin Watson said the group’s service offering remained “very focused” despite expanding into more sectors.

Mr Watson said Wood is still predominantly an oil and gas service company, but that being able to choose from a broader industrial market had helped “derisk” the business.

Mr Watson also reiterated Wood’s commitment to the North Sea, though only 5% of group revenues are generated by that side of the business.

Wood completed the £2.2billion takeover of Amec Foster Wheeler (AFW) last autumn and the integration process is “ahead of schedule”.

The company aims to shave more than £120million off annual costs by the end of the third year following completion of the takeover.

Wood’s UK footprint has grown as a result of the acquisition. The company employs 13,500 people in the UK, which equates to about a quarter of total headcount.

Mr Watson said Aberdeen was a “net beneficiary” of the deal, which has helped “broaden” the skills set of Wood’s north-east workforce.

He said Wood now has “better quality jobs”, including more head office positions, in Aberdeen.

The takeover was “never about removing substantial staff numbers”, Mr Watson said after the company’s annual general meeting in Aberdeen.

Across the group, Wood has cut 400 senior management roles, less than 1% of total headcount.

Wood has also consolidated its property portfolio. Six hundred AFW employees recently moved into Wood’s campus in Houston, which is full for the first time since 2014.

Mr Watson said he was excited that industry had come through the worst downturn in 40 years and that he expects Wood to return to growth in 2018.

Wood’s 2017 profits before tax, one-offs and discontinued items totalled £126.7million, which was down from £166.6million the year before. Revenue grew by 25% to £4.4billion.

Mr Watson said about 60% of Wood’s revenues now come from oil and gas, with a 50/50 split between upstream and downstream work.

Before the downturn, 90% of the group’s business came from upstream.

Revenue is also being generated by work in transmission and distribution, environment and infrastructure, and nuclear.

Mr Watson added Wood was “well positioned” to scoop up an increasingly large share of offshore decommissioning work.

Recommended for you

More from Energy Voice

Latest Posts