UK oilfield engineering firm Wood Group has been fined £12.9 million by the Financial Conduct Authority (FCA) for publishing inaccurate financial results between January 2023 and November 2024, the regulator announced on Wednesday.
The penalty, reduced from a potential £18.5 million due to the company’s cooperation, stems from findings that Wood Group’s accounting judgments were improperly influenced by a desire to maintain previously reported financial performance. The FCA investigation began in June 2024, following an independent review initiated by Wood Group in November 2023.
According to the FCA, the inaccurate reporting followed poor performance on certain projects, and the company lacked adequate systems and controls to prevent the misrepresentation of its financial position. Steve Smart, the FCA’s enforcement director, stated that investors “rely on accurate information to make decisions,” and that Wood Group “failed to provide this and fell well short of the high standards we expect of listed companies.”
Wood Group acknowledged the FCA’s findings, stating they were consistent with the conclusions of the Deloitte review. The company affirmed its full cooperation with the investigation and highlighted the implementation of a remediation and governance action plan to address the identified issues.
The financial irregularities surfaced after Wood Group commissioned the independent review by Deloitte in 2024, which uncovered “inappropriate management pressure” to adhere to existing financial reports despite documented problems within its projects business, specifically concerning “legacy lump-sum turnkey projects.”
The turmoil at Wood Group extended to its executive leadership, with the abrupt resignation of Chief Financial Officer Arvind Balan last year after it was revealed he had misrepresented his professional qualifications.
The unfolding situation coincided with a takeover bid from Sidara, a Dubai-based engineering company. Initial offers from Sidara, made in 2024, were significantly reduced, reportedly due to market conditions. The acquisition, valued at £216 million, is scheduled to be finalized next week, marking Wood Group’s departure from the London Stock Exchange.
The current market value of Wood Group stands at £199 million, a substantial decline from its position five years ago, with shares having fallen by 91% over that period. The company will join a growing number of firms exiting the London Stock Exchange, including Flutter Entertainment, Ashtead, and Indivior.
