Wood Group, the renowned engineering and consulting firm based in Aberdeen, has announced the immediate resignation of its Chief Financial Officer (CFO), Arvind Balan.
This decision follows an “incorrect description of his professional qualifications” that came to light after Balan admitted to an “honest oversight” regarding his credentials.
Although he had joined Wood in November 2023 and was approved as CFO in April 2024, he mistakenly referred to himself as a chartered accountant instead of a certified practising accountant in various public statements.
In his resignation statement, Balan said: “Regrettably, I made an honest oversight with respect to the description of my professional qualification as a chartered accountant instead of a certified practicing accountant.
“I continue to believe in the long-term potential of the company and its people – my decision is based on minimising distraction at this very pivotal time with our investors and lenders.”
This resignation occurs during a challenging period for Wood Group, which recently reported disappointing financial results for 2024.
CEO Ken Gilmartin voiced his dissatisfaction with the company’s performance, which has seen its share price decline sharply from 65.4p per share last Thursday to approximately 25p, marking a significant drop of around 64%.
The board has accepted Balan’s resignation, and Wood Group has indicated that further announcements regarding his successor and interim arrangements will be forthcoming.
This development follows other setbacks for the company, including a failed takeover attempt by Middle Eastern firm Sidara in 2024 and reported losses during the first half of that year.
Significant Contract Extension with Shell UK
In a positive turn of events for Wood Group, the company has also secured a substantial contract extension worth $120 million from Shell UK Limited.
This two-year, cost-reimbursable extension builds on their existing partnership that began with an original EPC contract awarded in 2021.
The contract focuses on providing brownfield engineering, procurement, and construction (EPC) services for both onshore and offshore assets across the UK.
Wood’s responsibilities will include delivering brownfield EPC services along with subsea management and integrity management at several key Shell-operated facilities.
These include the St Fergus and Mossmorran onshore terminals, as well as offshore assets such as Nelson, Gannet, and Shearwater.
Notably, the contract extension also expands Wood’s scope to include EPC services for the Penguins FPSO (Floating Production, Storage and Offloading) vessel.
Ken Gilmartin, CEO at Wood said: “We are proud to continue our decades-long relationship with Shell in the UK, focusing on the continued delivery of safe, reliable energy supply.
“The extension is recognition of our people and their commitment to deliver best-in-class outcomes for our clients.”
As Wood navigates through leadership changes and financial challenges, securing this contract extension with Shell demonstrates its ongoing capability to deliver valuable services within the industry.
