Wood Group faces a £13mn penalty from the UK's Financial Conduct Authority for overstating profits across three years due to a "poor operating culture." The Aberdeen-based engineering company made inappropriate accounting judgments to hide poor project performance, misleading investors and its auditor KPMG about financial results.

The £13mn fine represents a 30% discount from the original £18.6mn penalty after Wood Group cooperated with investigators. The accounting misstatements inflated profits for 2022 and 2023 by almost $122mn total, contributing to a tumultuous period that led to a cut-price acquisition by Dubai-based Sidara at £207mn.

Wood's financial troubles trace back to its £2.2bn 2017 acquisition of Amec Foster Wheeler, which left the company burdened with high debts. The scandal deepened when former finance chief Arvind Balan resigned less than a year after joining, having admitted misstating his accounting qualifications. The company shares are set to delist March 10 as the Sidara acquisition completes.