Shares in global engineering and consultancy services firm Wood, of Aberdeen, fell slightly today (December 20) despite it announcing new UK North Sea contracts worth more than £120 million.
The FTSE 250 company was down by 0.03% at 185.65p by the London market close.
It was unable to buck wider trends, with the FTSE 250 Index 1% lower and the Brent oil price down more than 4% at just over $70 a barrel as Covid concerns impacted markets.
Wood said the new deals, all secured during the fourth quarter of this year, secured at least 200 oil and gas industry jobs and reinforced its role as a “leading partner for asset operations”.
The contracts are with clients including Shell UK and Dana Petroleum.
Throughout 2021 we have secured valuable contract awards that strengthen our role as a trusted partner for on and offshore asset operations in the North Sea.”
Craig Shanaghey, president of operations for Europe, the Middle East, and Africa, Wood.
Wood said they would see it leverage its “rich heritage and expertise” in North Sea energy infrastructure, building on long-standing relationships to optimise operations, increase production efficiency and “drive decarbonisation to ensure reliable, safe and sustainable energy supply across a suite of onshore and offshore assets”.
Craig Shanaghey, Wood’s president of operations for Europe, the Middle East, and Africa, said: “The energy industry has been significantly challenged throughout the pandemic, putting pressure on asset operators and the supply chain to ensure security of energy supply under extraordinary circumstances.
“Throughout 2021 we have secured valuable contract awards that strengthen our role as a trusted partner for on and offshore asset operations in the North Sea.
“The awards are recognition of the talent, expertise and capability we have within our team to deliver a positive impact on the operations of critical energy infrastructure in the UK.”
Mr Shanaghey added: “As we collectively, as a society and industry, seek to accelerate the journey towards a net-zero future, a huge enabler for our success will be driving down the carbon intensity of the conventional energy production that we still need today.”
Wood said its new three-year contract with Shell UK built on a multi-decade relationship with the energy giant.
It will see Wood deliver brownfield engineering, procurement and construction services across Shell’s onshore St Fergus and Mossmorran terminals, as well as the Nelson, Gannet and Shearwater offshore assets.
With Aberdeen-based Dana, Wood continues its almost 10-year relationship after sealing a three-year contract extension, with options, to deliver operations and maintenance services across the energy firm’s Western Isles and Triton floating production storage and offloading vessels.
Wood said its latest contract wins closed a successful 12 months for the group in the UK North Sea, following the announcement of several other long-term deals earlier in the year.
Raft of deals secured during 2021
The order book has been boosted during 2021 by new work with Spirit Energy and Taqa, as well as Shell and Nederlandse Aardolie Maatschappij, a joint venture between Shell and ExxonMobil, in the southern North Sea.
Wood provides consulting, project and operations services in more than 60 countries, employing around 40,000 people globally.
It said its new contracts with Shell and Dana would be delivered by dedicated on and offshore teams based in the UK, securing the employment of around 200 people.
Wood has been diversifying its activities in recent years.
It expects export revenue from low-carbon projects to significantly increase as the energy transition gathers pace.
£430m loan to drive Wood’s transition
Earlier this year, the company secured a UK Government-backed loan worth £430m to bolster its green credentials.
The cash was the first to be delivered under a new funding scheme, the UK Export Finance “guarantee”, aimed at helping exporters through the “energy transition” and creating green jobs around Britain.
Under the agreement, Wood is committed to increasing its clean growth portfolio and significantly reducing its greenhouse gas emissions over the five-year term of the loan.