Wood (LON: WG) expects to take a one-time $100 million charge in relation to a legacy Amec Foster Wheeler defence contract, Aegis Poland.
Wood said losses for Aegis Poland, a fixed contract for construction of buildings to house the Aegis Ashore anti-missile defence facility for the US Army Corps of Engineers, are expected to total $222m, rather than $133m previously estimated.
The Aberdeen-headquartered engineering giant has delayed its full year results, previously scheduled for March 8, while an audit process and an external review are carried out.
Amec Foster Wheeler, which Wood acquired in 2017, won the work in 2016.
Wood said Aegis Poland was around 90% complete by value at December 31 2021, and 93% complete by physical progress.
It is expected to be operationally complete in the second half of this year.
Wood said a further announcement will be made once the results date is confirmed.
Guidance on its underlying full-year results, issued in a trading update on January 13, remains unchanged, Wood said.
Last month the company said operating profits are expected to be around $195-205 million, down slightly on the prior year’s $214m, while revenues are expected to dip by 14% to around $6.4billion (£4.6bn), as modest growth in consulting (up 2%) and operations (3%) were offset by a 35% decline in projects work.
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