Wood Plc starts review of part of its consulting unit, cuts revenue outlook

(Reuters) – British oilfield services and engineering firm Wood Plc has started a strategic review of a part of its consulting business that is involved in infrastructure development, the company said on Friday, as it cut its full-year revenue forecast.

The board’s view is that the value of the built environment business, which is undergoing the review, is not being reflected in Wood’s current market capitalisation, the company said in an email in response to Reuters.

The built environment business has about 7,000 employees and operates across government, transportation, water, industrial, energy and mining markets.

Shares of the Aberdeen-based company dived 8.7% to 183.55 pence at 08:35 GMT, and are the biggest percentage decliner on the midcap index.

The company warned, in a statement, that the rate of recovery in its projects arm, which serves energy customers, has been slower than anticipated largely due to the deferral of activity and contract awards into 2022.

Full-year revenue is now expected to be about $6.4 billion, compared to a prior forecast of between $6.6 billion and $6.8 billion, and below a $6.7 billion company-provided consensus estimates.

(Reporting by Shanima A in Bengaluru; Editing by Anil D’Silva and Shailesh Kuber)