Thursday 9 May 2019 8:32 am

Wood Group wins $1bn nuclear contract at Sellafield decommissioning site

Engineering firm Wood has been tasked with providing engineering design for Sellafield nuclear decommissioning site in Cumbria for the next 20 years, in a £770m deal.

Read more: Wood Group shares tumble after $38m sale of non-core conveyor business

The FTSE 250 listed company said this morning it has been selected as part of the site’s new procurement model. Wood will provide the front end design and engineering for a portfolio of major projects and site-wide project delivery improvements. This will involve work to “optimise design, constructability, and overall project delivery,” it said.

Chief of Wood’s specialist technical solutions business Bob MacDonald said: “This is a fantastic endorsement of Wood’s ability to meet the most complex nuclear decommissioning challenges.

“We already have a deep, shared history with Sellafield and this new appointment provides a platform for us to assist with safe and secure operation and clean-up over the next two decades.

“This award reflects a highly collaborative approach that we adopt to achieve shared outcomes with customers and partners. We are looking forward to working with Sellafield and our partners to maximise socio-economic benefits for local communities.”

Wood operates in more than 60 countries, employing around 60,000 people, with revenues of around $11bn.

Shares fell one per cent this morning, however, as the firm named its new chairman as former non-executive director Roy Franklin. He will take post on 1 September after 40 years of experience as an executive in the energy industry, as current chair Ian Marchant retires.

Marchant said: “Roy has made a significant contribution to Wood as a non-executive director and our senior independent director since his appointment in 2017. He brings a wealth of experience and will provide valuable continuity and support to Robin Watson in his leadership of Wood.

Read more: Wood Group slashes losses as merger drives contract wins

Wood also told investors this morning it stood by its previous earnings and cash guidance for the year. The firm said it was “confident of achieving further earnings growth and strong cash generation in 2019”.

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