Boardroom changes at Wood Group herald another important stage in the Aberdeen-based energy service giant’s evolution, says boss Bob Keiller.
Speaking after the firm’s latest interim management statement (IMS) and an annual general meeting targeted by pro-Palestine campaigners, Mr Keiller said he was optimistic about the prospects for 2014.
Wood Group now has a new chairman, with former SSE chief executive Ian Marchant having taken over from Allister Langlands at the end of the annual meeting.
There is also a new non-executive director – Cairn Energy managing director and chief financial officer Jann Brown – joining the boardroom team this week.
Mr Keiller, who has been chief executive since November 2012, said the new blood at the top would soon start to “exert their influence” over the company’s direction.
He also defended the recent decision by a subsidiary, Wood Group PSN (WGPSN), to slash the rates it pays to sub-contractors by 10% in an effort to cut spiralling costs.
Other energy service companies are expected to follow suit, although Mr Keiller rejected any suggestion of collusion.
“Whenever we go ahead and make changes there are always going to be people who are against them,” he said, adding that most WGPSN customers had accepted the new terms.
Critics have warned that cutting rates will serve only to drive out sorely needed skills in the industry.
In its IMS, Wood Group said performance for the year to date was slightly ahead of expectations at its Wood Group Engineering and WGPSN businesses.
The company’s turbine joint venture operations – comprising EthosEnergy, Rolls Wood Group and TransCanada Turbines – have been adversely impacted by delays on the Dorad contract, but Wood Group said this was likely to be “largely recovered” by the end of the year.
It added: “Overall, our trading outlook for the full year is unchanged and we continue to expect EBITA (earnings before interest, tax and amortisation) to be up in 2014, with growth in Wood Group PSN offsetting a reduction in Wood Group Engineering.”
“Our subsea business is seeing good activity levels, with the most active markets being in Europe, Middle East, Africa and in the Caspian.”
Last year’s 14% rise in group pre-tax profits, to £247million, has been followed by a string of big contract awards as well as acquisitions.
Mr Keiller said the FTSE 100 index company was always on the lookout for good opportunities to expand, adding: “We are still ambitious to do well and continue the group’s growth in the longer term.”
Wood Group currently operates in 50 countries worldwide and earns more than £4billion a year in sales.
