Wood Group pulls dividend, cuts executive pay by 10%

Oil services company Wood Group pulled its dividend and implemented a 10% pay cut for directors due to the coronavirus pandemic.

As oil prices collapsed the company said it would “regrettably” also have to fire staff, while others would be placed on furlough, unpaid leave or have their hours cut in an effort to save £40m.

Other overhead cost reductions included axing discretionary spend, travel costs and further utilisation of shared service centers and high value engineering centers, Wood said on Thursday.

It also cut capital expenditure by up to $25m, which included postponing the implementation of a new enterprise resource planning system.

The final dividend of 23.9 cents per share would be cancelled, saving of $160m. Wood added that it expected some of its $8bn order book to be cancelled or postponed on the back of the collapse in oil prices.

Source: sharecast.com