Scotland business

Wood chairman Ian Marchant to step down from energy services firm

Ian Marchant Image copyright Wood
Image caption Mr Marchant became chairman of Wood in 2014

The chairman of Aberdeen-based energy services firm Wood is to step down within the next 12 months.

The announcement came as the company reported a sharp rise in revenues and narrowing of losses last year.

The move by Ian Marchant is in line with a Financial Reporting Council code which limits the length of time a chairman can remain in post.

He will remain as a director and chairman until a successor is chosen, "to ensure an orderly transition".

Mr Marchant was first appointed to the Wood board in 2006.

He was chief executive of SSE for 10 years before becoming chairman of Wood in 2014.

In its full-year results, Wood reported that revenues, including joint ventures, shot up by 79% to $11bn (£8.3bn), helped in part by the acquisition of engineering and technical services giant Amec Foster Wheeler, which completed last year.

'Broaden and diversify'

Wood chief executive Robin Watson told BBC Radio's Good Morning Scotland programme: "The whole strategic rationale of the deal that we just completed and the strategy we have had for the past four years is to broaden and diversify the sectors that we are exposed to.

"Just now, we are about 30% upstream and midstream oil and gas. Previously as Wood Group we were 90% oil and gas."

Wood also reported that full-year losses narrowed to £5.7m, from £22.6m, after exceptional costs of £138m. Its order book currently stands at about £7.7bn.

Its net debt was reduced over the year by £340m to about £1.1bn.

Mr Watson added: "Our performance in 2018 has strengthened our conviction in Wood's potential and we are excited about our prospects. We are confident of achieving further growth in 2019."

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