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Oil & Gas Services

Wood Group CFO quits over incorrect CV but wins Shell UK contract extension

Investors did not know what way to turn after a curious 24 hours for John Wood Group PLC (LSE:WG.), which parted company with its new chief financial officer with immediate effect after important elements of his CV were found to be untrue.

The announcement that Arvind Balan had tendered his resignation after hours Wednesday was followed on Thursday by news of a $120 million contract extension with Shell UK.

Wood Group will provide brownfield engineering, procurement and construction (EPC) for Shell's UK onshore and offshore assets over two more years.

This relates mainly to EPC services on existing oil and gas fields, as well as subsea and integrity management of the St Fergus and Mossmorran onshore terminals and the Nelson, Gannet and Shearwater offshore assets.

After tendering his resignation, Balan said he "made an honest oversight with respect to the description of my professional qualification as a chartered accountant instead of a certified practising accountant".

CEO Ken Gilmartin said he and the company wished Balan "all the best in his future endeavours".

Shares in the company rose in initial trades on Thursday before quickly tumbling 4% and then surging to a 7% gain by lunchtime.

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