25th Feb 2015 14:23
LONDON (Alliance News) - John Wood Group PLC Wednesday said it has promoted Dave Stewart to be the new chief executive of Wood Group PSN, while also promoting Michele McNichol as chief executive of Wood Group Mustang.
Stewart will join PSN, the company's division that provides brownfield services to the oil and gas industry, in April, and moves from his previous role as the managing director of PSN's UK operations. A brownfield site is a project based on prior work, or rebuilding a previous project on the site. A new project, built from scratch, is called a greenfield site.
Stewart joined the Wood Group 17 years ago and has over 38 years experience in the oil and gas industry. He will report to Robin Watson, who will take up his new position of chief operating officer of Wood Group in April.
In his new position, Stewart will focus on continued business efficiency and support PSN's growth in the global oil and gas industry, said Wood Group.
"In 2014 Wood Group PSN's North Sea business, led by Stewart, achieved over USD1.5 billion, accounting for 40% of Wood Group PSN's overall revenue," said Watson.
"Wood Group PSN is leading the charge in terms of understanding the measures required to safeguard the future growth of the oil and gas industry globally, and I look forward to taking on this challenge," said Stewart.
Wood Group's PSN division is being lifted by the shale oil and gas boom in the US. Earlier this month, Wood Group said the unit's earnings before interest, tax, depreciation and amortisation rose 30% in 2014 on the back of a strong performance in US shale as well as a high contract renewal success rates in the UK North Sea.
The company is facing a difficult 2015 as oil companies slash spending in response to the recent slide in oil prices, but Wood Group said when it reported its 2014 results that it expects its underlying business to be resilient and to get a boost from acquisitions. Its PSN division has expanded its service offering by acquisitions including Swaggart in the US.
In a separate statement on Wednesday, Wood Group said it also has promoted Michele McNichol to the chief executive role of Wood Group Mustang, which provides a range of project management, engineering, procurement and construction management services.
McNichol has been with Mustang since 2001, and will take over from Steve Knowles who is retiring on April 1.
"I welcome the opportunity to take Wood Group Mustang into its next evolution, focusing on efficiencies and effectiveness to deliver the most competitive, creative solutions for our customers," said McNichol. "We will remain committed to our people-oriented, project-driven culture, which translates into highly effective teams."
Wood Group shares were up 0.5% to 654.50 pence per share on Wednesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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