Annual Report 2021

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Picture of Robin Watson

Robin Watson Chief Executive

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“2021 was a challenging year for the Group, with the ongoing pressures of the pandemic, mixed market conditions across our businesses and continued challenges in Projects impacting our performance. Despite this, we ended the year with positive momentum and a growing order book (up 19% on last year) which gives us confidence that activity levels will be higher in 2022.

The sale process of our built environment business is progressing well and we continue to expect to announce a sale agreement in the second quarter of this year. A sale will deliver significant value for our shareholders and help move the Group onto its next chapter.

We are now focused on the future for Wood beyond this sale – to ensure we can fully capitalise on our deep engineering knowledge and expertise to capture the growth opportunities ahead across both energy security and sustainability, as we help clients move towards net-zero.

I have shared with the Board that I consider the sale of our built environment business as marking the start of the next strategic phase for Wood and an appropriate time for me to step down as Chief Executive. I look forward to continuing to serve on the Board until my successor is in place and I remain fully committed to our business delivery and enabling a smooth transition.”

Key messages

Icon economic approach
  • 2021 was a challenging year with the ongoing pressures of the pandemic, mixed market conditions and continued challenges in our Projects business
  • Despite a decline in revenue we improved our margin
  • Trading momentum improved during the year and our order book is up significantly
  • Cash performance reflects exceptional cash flows and a large working capital outflow
  • We recognised exceptional charges, most notably a new charge of $99m on our Aegis Poland contract
Icon drone
  • We made some progress in 2021 to reduce risk across our contract portfolio
  • The proposed sale of the built environment business will, we believe, deliver significant value for shareholders
  • We are well placed in our markets for future opportunities in energy transition and industrial decarbonisation, with a wide range of engineering capabilities
Icon strength of tools
  • We continue to make good progress towards our sustainability targets and are proud to have been awarded a rating of “AA Leader” from MSCI for the seventh consecutive year
  • We are making progress in creating an inclusive working environment that celebrates diversity and supports the wellbeing of our people


Full year results for the year ended 31 December 2021



(2020: $7,564m)
Down arrow 15.4%

Revenue (pre-exceptional items)1


(2020: $7,564m)
Down arrow 15.0%

Down arrow14.2% (like-for-like)2

Adjusted EBITDA3


(2020: $630m)
Down arrow 12.1%

Down arrow 9.8% (like-for-like)2

Adjusted EBITDA margin


(2020: 8.3%)
Up arrow 0.3ppts

Operating profit before exceptional items


(2020: $214m)
Down arrow 10.3%

Operating profit / (loss)


(2020: $(33)m)
movement: n/a

Loss for the year


(2020: $(228)m)
Up arrow 42.5%

Basic EPS


(2020: (34.1)cents)
up arrow 41.3%

Adjusted diluted EPS4

17.5 cents

(2020: 23.2cents)
up arrow 24.6%

Net cash (used in) / generated from operating activities


(2020: $303m)
movement: n/a

Free cash flow (new definition)5


(2020: $(46)m)
movement: n/a

Net debt including leases


(2020: $1,556m)
Up arrow 18.4%

Net debt excluding leases6


(2020: $1,014m)
Up arrow 37.4%

Net debt / adjusted EBITDA (reported basis)7


(2020: 2.1x)
movement: n/a

Order book8


(2020: $6,524m)
Up arrow 18.8%

Measuring our performance

To help the Group assess its performance, our leadership team sets KPI targets and monitors and assesses performance against these targets on a regular basis.


EBITA graph

Adjusted diluted graph

Net debt

Dividend per ordinary graph

Cash conversion graph

Linking our KPIs to our strategy

“Being a premium, differentiated business delivering exceptional returns for our clients, our team, our investors, and the communities in which we work.”

1 Being a premium, differentiated business delivering for our clients
2 Delivering for our team
3 Delivering for our investors
4 Delivering for our communities

Our aims, goals and 2021 progress

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At a glance

Wood is a global leader in consulting and engineering across energy and the built environment. We provide consulting, projects and operations solutions helping to unlock solutions to some of the world’s most critical challenges.

Three service lines







Two broad end markets




Built environment

A global business of breadth and scale






year history



Our business model

We create value by delivering differentiated consultancy and engineering solutions throughout the asset life cycle across energy and built environment markets.


Performance driven and innovative solutions

Capabilities levered to structural growth in energy transition, industrial decarbonisation and sustainable infrastructure

Talented, flexible and motivated workforce

Operating structure optimised for sustainability, cross-service line opportunities and growth

Capital structure and allocation

Flexible commercial model with a balanced risk appetite

Robust risk governance and operations assurance policies and processes

Sustainability strategy aligned with UN goals

down arrow
Four primary trends shape our markets and drive our strategy:

Energy transistion icon

Energy transition and industrial decarbonisation
Engineering solutions supporting energy delivery, the transition to a low-carbon future and addressing complex industrial decarbonisation challenges.

sustainable infrastructure icon

Sustainable infrastructure
Capabilities to enable more sustainable and resilient living, including the planning, design, build and operation of connected and resilient infrastructure.

Future skills icon

Future skills
Developing inclusive, agile and highperforming teams, with the right skills, in the right place, at the right time to remain competitive and well positioned for growth with the flexibility to respond to evolving client demands.

Technology and digitisation icon

Technology and digitisation
Utilising technology to create future-ready industry through optimising asset performance and digital innovation.

down arrow

Creating value through our differentiated model

Our strategic enablers:

agile teams icon

Agile teams
We deploy our most talented people with agility to deliver the right solutions now and in the future. Our ability to adapt keeps us relevant and offers great opportunities for our people.

Exceptional execution icon

Exceptional execution
We are differentiated by our shared commitment to consistently delivering exceptional outcomes that add value and build trust. We have around 90% repeat business and have developed leading market positions from our long track record of delivering safe and best-in-class projects.

Commercial acumen icon

Commercial acumen
We employ an asset light, flexible model allowing us to respond quickly to changes in market conditions and allocate capital where it impacts most. Our contracting structures are largely reimbursable with a range of specific contracting structures to align with client needs within our measured risk appetite. We have a broad client base with a wide mix across sectors giving us low individual client dependency.

Technological advantage icon

Technological advantage
We deliver greater efficiencies and create new solutions through combining our deep domain knowledge with leading-edge,enabling technology. We provide solutions to some of the world's most complex projects and draw on our extensive expertise and knowhow to bring new perspectives on the challenges these projects present.

down arrow
Our five medium-term priorities:

Targeting margin improvement

Optimise and standardise
service delivery model to achieve exceptional execution

Optimising our portfolio
mix of services and markets in line with our strategic objectives

Technology differentiation
through internal R&D, strategic partnerships and scalable solutions

Improved risk/reward
on contracts in line with balanced risk appetite

down arrow
Value outputs

For investors

  • Total shareholder return
  • Growth and cash generation

For our people

  • Rewarding careers and employee retention
  • A workplace where different backgrounds, experience and expertise are welcomed and celebrated

For clients

  • Best-in-class delivery, consistently
  • Global reach with balanced portfolio of long-term partner relationships with clients
  • Leading technical services and smarter, more sustainable solutions
  • Track record on industry-leading projects

For communities

  • Significant contribution to local employment and communities
  • Employee matched funding & community support c$1.4m

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Effective engagement with our stakeholders

The Board recognises that the medium and long-term sustainability of the Company is linked with delivering value for our stakeholders. In order to successfully deliver our strategy and create value for our stakeholders it is important to understand what matters to them.

Through regular engagement, we gain insight into the different perspectives of our diverse stakeholders, who often represent competing interests. Considering their insights and opinions builds strong, constructive relationships and enables robust and sustainable decision making at both executive and Board level.

  • Employees
  • Investors and lenders
  • Clients
  • Suppliers
  • Environment
  • Community
  • Pension plans: Current & deferred workforce and pensioners

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