WOOD had sold a US materials handling business for $38 million (£29m) to help the company reduce its debts.
The Aberdeen engineering giant said it has sold Terra Nova Technologies to the Murray & Roberts construction services group in a cash deal.
The disposal continues the work on rationalizing the group’s portfolio, which expanded significantly as a result of the £2.2 billion acquisition of Amec Foster Wheeler in 2017.
Read more: Wood says oil and gas market recovery slower than expected
This gave Wood exposure to a wider range of engineering businesses while helping reduce its reliance on the North Sea oil services market, which has been under pressure amid the plunge in the crude price since 2014.
“Wood’s strategy going forward is to focus on asset light solutions rather than the manufacture / fabrication of equipment,” said chief financial officer David Kemp.
“The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.”
In January Wood said it had sold a basket of interests including a stake in a roads operation in England for $28m without naming the buyers.
Read more: Wood hails asset sales as engineering giant increases firepower
The portfolio included a 25 per cent stake in a company that maintains the A13 in East London and interests in two Italian power plants and a fabrication business in China.
Wood has been looking to reduce debt since completing the Amec Foster Wheeler takeover.
Announcing a 69 per cent increase in annual underlying profits, to $630m, last week, Wood said progress towards reducing leverage to the planned level would be more gradual than originally anticipated. It cited factors such as the impact of a slower oil and gas sector recovery and slower progress on non-core asset disposals due to its focus on value.
Read more: Oil price warning bodes ill for North Sea
Wood said then that it saw a positive outlook for facility modifications work in the North Sea.
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