Wood Group Fined £13 Million for Inaccurate Financial Reporting

John Wood Group, a UK-based oil and engineering firm, has been fined £12.9 million by the Financial Conduct Authority (FCA) for repeatedly publishing inaccurate financial results between January 2023 and November 2024. The FCA's investigation, which commenced in June 2025, revealed that the company’s accounting practices were influenced by a desire to maintain previously stated financial results, despite poor project performance. The FCA noted that Wood Group lacked adequate systems, controls, or procedures to prevent such inaccuracies.

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The fine comes amid a tumultuous period for Wood Group, which is in the process of being acquired by Sidara, a Dubai-based engineering company. The acquisition deal, valued at £216 million, represents a significant reduction from Sidara's initial offer of £1.58 billion made in 2024. This decline in valuation is attributed to market turmoil and the ongoing fallout from Wood Group's financial mismanagement. The company has been grappling with the repercussions of an independent review conducted by Deloitte, which uncovered "inappropriate management pressure" to adhere to existing financial reports despite ongoing issues with several contracts.

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• John Wood Group: The UK oil and engineering firm facing regulatory scrutiny and financial penalties.

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• Financial Conduct Authority (FCA): The regulatory body that imposed the fine and conducted the investigation.

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• Arvind Balan: Former Chief Financial Officer of Wood Group, who resigned after it was revealed he had misstated his professional qualifications.

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• Sidara: The Middle Eastern engineering company set to acquire Wood Group.

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In response to the FCA's findings, Wood Group acknowledged the issues as consistent with Deloitte's review and stated, "Wood cooperated fully with the FCA throughout its investigation." The company has developed a remediation and governance action plan to address the identified issues and has begun implementing it, as noted by the FCA.

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Steve Smart, the FCA’s enforcement director, emphasized the importance of accurate information for investors, stating, "Wood Group failed to provide this and fell well short of the high standards we expect of listed companies." This sentiment reflects broader concerns regarding corporate governance and accountability in the financial sector.

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As Wood Group prepares for its acquisition by Sidara, the company is expected to continue implementing its remediation plan to restore investor confidence and address the regulatory findings. The transition marks a significant shift for Wood Group, which is also set to exit the London Stock Exchange, joining other companies that have recently left.

The Guardian

• “Wood Group failed to provide this and fell well short of the high standards we expect of listed companies.” — Steve Smart, FCA Enforcement Director

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• “It added: “Wood cooperated fully with the FCA throughout its investigation.” — Wood Group Statement

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