Jan 13, 2013 (Reuters) – British engineering and oilfield services firm Wood Plc (WG.L.) reaffirmed its annual revenues and core earnings forecasts Thursday and stated that selling a division of its consulting business is the best way to create value for shareholders.
The company said that it anticipates that activity levels across its business will increase in 2022.
Wood Plc stated, “While we have witnessed a stabilisation of market conditions during 2021,” but the recovery scale was less than our original expectations due the delay in activity and delays in new award.
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Major oil companies have increased their spending after higher oil and gas prices. However, the Omicron coronavirus has cast a shadow over the industry’s future.
Aberdeen-based company, who began a strategic review for the Built Environment division in October, stated that it expects to announce its sales agreement in the second quarter.
Bloomberg News reported Wednesday that the unit could have a value of around 2 billion pounds ($2.74 Billion) in a deal. Sources familiar with the matter said this was based on information Bloomberg News received from people familiar.
Built Environment employs approximately 7,000 people and operates in government, transportation, energy, and mining markets. It earned about $150 million in core earnings and generated $1.3 billion in revenue by 2021.
($1 = 0.7287 pounds)
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Reporting by Shanima A, Bengaluru; editing and translation by Uttaresh.V
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