Bob Keiller sends a message on Core Values to Wood Group employees every week. The note below is taken from a message he sent to employees a few weeks ago. Remember the '80s US rock band Van Halen? Ever heard of a clause buried deep in their lengthy touring contract? It stated something like “there should be no brown M&Ms backstage…if found, the band has the right to cancel the concert at full pay without warning.”
Each week Energy Voice pulls together the Friday Five. Click below to see the site’s most read and engaged with copy of the week.
Wood Group chief executive Bob Keiller said it would spend “every dollar needed but not one dollar more” to get the job done. The company leader was briefing investors about the firm’s financial results when he made the commitment today. Wood Group recorded a 20% drop in revenue. Since the oil price slip, the firm has been forced to make 5,000 redundancies, including 1,000 in the UK, 3,000 in the US and 1,000 in the Middle East.
Wood Group confirmed revenue for the first half of the year was down 19.3%.
Wood Group has won a front end engineering and design (FEED) contract for the subsea development of the Talisman Energy Ca Rong Do field offshore Vietnam. The work will be carried out by Wood Group Kenny (WGK) who will also complete comprehensive flow assurance studies. WGK’s Kuala Lumpur office will conduct the work on the subsea FEED and will be supported by other offices in Asia Pacific.
Wood Group has won a $28million contract with Mexican state-owned oil company Pemex. The deal will see Wood Group Kenny (WGK) and Wood Group Mustang (WGM) provide deepwater and complex shallow water concept and basic engineering services.
I’ve received many questions following recent articles on how to manage during difficult times. Readers are asking what specific things they could do, or I have done, or we are planning to turn the generic advice into practical measures. Well, I suppose it all depends. My business situation will be different from everyone else’s, so my decisions may or may not be relevant to others, but I am happy to share some of the tactical options we took to make our business less vulnerable during the current downturn in our industry.
Many of us are old enough to remember buying vinyl albums. After you bought a new one, you would study every detail of the cover, and, then, you would play it repeatedly until you knew every track. Not only that, you knew the order of the tracks. I find good music inspirational. Some of you will already know that I write a weekly message on Core Values to my employees, and I always use a musical reference as a hook. So today, I want to share my playlist for leading in difficult times.
Wood Group has acquired BETA Machinery Analysis (BETA) for $14.3million.
Wood Group confirmed the slide in oil price has hit its financial results. In a pre-close trading update for the first half of the year, the company said despite the dip it still expects full-year earnings before interest, tax and amortisation (EBITA) to adhere to analyst expectations.
Wood Group has struck a 10 year agreement with Antin Infrastructure Partners (Antin IP) worth $250million. The deal will see Wood Group provide operating services for the North Sea’s Central Area Transmission System (CATS).
Wood Group has agreed a six year deal with state-owned Saudi Aramco to establish an offshore engineering centre of excellence in Al Khobar, Saudi Arabia.
Wood Group Kenny (WGK) has secured a multi-million dollar five-year contract with Oil Spill Response to provide the maintenance support for a key part of a containment toolkit that would be used to control hydrocarbon release in the event of a subsea well control incident. WGK will work with the organisation to ensure flexible flowlines included in the toolkit are continuously in a condition suitable for immediate load out if mobilised by subscribing oil and gas operators. The work will include maintenance management, recommendations for preservation, inspection and testing of all ancillary and lifting equipment, as well as the flexible flowlines, stored at sites in the UK, Singapore and Brazil.
Wood Group has confirmed almost 100 jobs are at risk at the Energy service giant. As previously reported on Energy Voice, the company said it had launched a consultation with about 380 staff in its Wood Group PSN business - 80 of whom are expected to lose their jobs - following an operational review aimed at reducing costs and improving efficiency. It is anticipated a further 12 roles will go in the company’s Wood Group Kenny subsidiary.
The oil price slump grinds on and the North Sea remains in crisis, but Wood Group’s chief executive Bob Keiller is clear that people, the UK offshore industry’s primary resource, must still be valued. During last month’s UK Oil & Gas roadshow ahead of the budget, Keiller made it clear that talk about “we’re going to have to get rid of a few people” was unacceptable. “Unless you’re in the Mafia you don’t get rid of people,” he warned an Aberdeen audience. “You may take away their jobs, you may take away their self-esteem, their dignity, their reason for getting up in the morning; there will still be a person there; there will still be a family behind them. “The impact of job losses shouldn’t be underestimated.”
Energy service giant Wood Group has been awarded a contract by Statoil, on behalf of Gassco, for engineering modifications and upgrades to its Kollsnes gas plant, west of Bergen, Norway. The estimated value of the contract, including options and procurement, is more than £41million.
An Aberdeen-based oil and gas company's US branch will work with one of the world's largest petrochemical companies during their multi-billion dollar Texas expansion. Wood Group's Mustang's Automation and Control business unit is providing process control systems, detailed engineering, procurement and fabrications services for the huge project by ExxonMobil Chemical Company.
Wood Group will reduce costs by more than $30million this year in light of the declining oil price. The company said it will keep a tight rein on costs and apply "tougher filters" to potential acquisitions. Despite the reduction in costs, Wood Group's revenue rose 7.8% to $7.6billion and profit after tax also saw a boost from $300.5million the previous year to $336.3million.
Over the past 3 months the share price of the Wood Group has fallen by 21.5%. The recent announcement of the creation of a possible 150 new jobs on the back of winning a £500 million contract for BP may help stabilise this price slide. But like all oil service companies their share price fate is dependent on the price of a barrel of oil. And the once powerful international oil industry appears to be impotent to influence prices one iota at present.
An advisory group has been established to help the Government address Scotland’s failure to equip young people for work. Sir Ian Wood will be a founding member of the Scottish Government’s Developing the Young Workforce National Advisory Group. The oil magnate chaired the Commission for Developing Scotland’s Young Workforce, which found Scotland is “simply not preparing or equipping young people for the world of work”.
Wood Group has bought over a construction and fabrication services company in the US for $36.3million. The company has acquired Swaggart Brothers which employs 200 staff in locations across America. It covers a number of oil and gas activities in shale basins including the Permian, Eagle Ford, Niobrara and Bakken.
Wood Group's boss was inducted into the Entrepreneurial Scotland Hall of Fame at a ceremony in Glasgow last night. Bob Keiller, the Aberdeen-based energy service company's chief executive, follows in the footstep of illustrious names like Sir Moir Lockhead, Donald Macdonald and Sir Ian Wood who have all received the accolade. Established in 2002 to recognise exceptional leadership, the Entrepreneurial Scotland Hall of Fame recognises successful entrepreneurs who have made a major contribution to Scottish business life.
A senior management reshuffle at Wood Group means the energy service firm’s biggest operating division is losing its chief executive. Wood Group PSN (WGPSN) CEO Robin Watson, 47, is to become group chief operating officer – a newly created role – during the first half of 2015, the company said yesterday. Aberdeen-based Wood Group also revealed a looming change at the helm of its finance team, with chief financial officer Alan Semple, 55, having announced his retirement.
The chief financial officer of Wood Group will step down from his current role, the company has said. Alan Semple has been in a number of senior financial roles with the company for more than 19 years. He has also been the chief financial officer and a member of the board since 2000.