Latest news with #FCA
Bloomberg
9 hours ago
- Business
- Bloomberg
Wood Group Told of UK's FCA Investigation Into Company
John Wood Group Plc, the UK energy-services firm, said the country's Financial Conduct Authority began an investigation into the company spanning a 22-month period. The Scottish firm said in a statement on Friday that the probe covers the period from Jan. 1, 2023 to Nov. 7, 2024.
Business Recorder
13 hours ago
- Business
- Business Recorder
Ministries oppose gas price increase
ISLAMABAD: The gas price increase has been opposed in its current form by several line ministries, citing concerns that it will disproportionately impact the industrial sector, lead to higher electricity prices, and result in cross-subsidization of the fertiliser industry at the expense of other industries. The concerns raised by ministries representing various sectors have also been made part of the summary which came under consideration of the Economic Coordination Committee (ECC) of the Cabinet. The Power Division stated that the proposed hike in gas rates for the power sector—from Rs 1,050/mmBtu to Rs 1,313/mmBtu—will increase electricity generation costs for thermal plants using domestic gas by approximately Rs 10 billion in FY 2025–26. This increase is expected to result in higher Fuel Cost Adjustments (FCA), ultimately passed on to consumers, raising electricity tariffs by around Rs 0.10 per unit. Pakistan now gas-surplus amid demand collapse, says Motiwala The Power Division further noted that rising generation costs could make electricity less affordable for all consumer categories. This may reduce the overall sales of Discos, with a knock-on effect on capacity payments in the power sector. Additionally, the price hike would reduce the merit order ranking of gas-based power plants, pushing them below imported fuel plants such as those using coal. This shift could result in an estimated foreign exchange exposure of around $140 million due to increased coal imports. The Division cautioned that such a change in the energy mix must be carefully considered due to its implications for energy affordability, the balance of payments, and broader macroeconomic stability. In a scenario where imported fuel-based plants replace gas plants, the Sui gas companies could face estimated revenue losses of Rs 39 billion, depending on global fuel price trends. The Power Division also addressed a reported Rs 41 billion revenue shortfall claimed by SNGPL, attributed to RLNG diversion. However, it emphasized that the cost of RLNG diversion is already covered under Gas Supply Agreements (GSAs) with government power plants and reimbursed through CPPA-G via NPD payments. Therefore, it recommended that only genuinely unrecovered amounts, if any, be allowed in SNGPL's accounts. The Ministry of Industries and Production (MoI&P) expressed concern that increasing gas prices for the general industry—from Rs 2,150 to Rs 2,350/mmBtu—will escalate the cost of doing business, hinder industrial growth, and damage export competitiveness. The Ministry warned this would further disadvantage Pakistani industries compared to regional competitors. MoI&P highlighted that the new National Tariff Policy 2025–30 aims to reduce Customs duties on finished goods and decrease input costs for locally manufactured products. These objectives would be undermined if the cost of industrial inputs like gas continues to rise. The Ministry recommended that the Petroleum Division reconsider its decision and refrain from increasing gas prices for the general industry. The Finance Ministry also raised objections, noting that while gas prices for the fertiliser sector have been kept unchanged, the process industry will face a Rs 200/mmBtu increase. It argued this effectively results in the process industry cross-subsidising the fertiliser sector. The Petroleum Division was urged to consider full cost recovery from the fertiliser sector to alleviate the subsidy burden on the rest of the industry. Furthermore, the Finance Ministry criticized the current practice of recovering Unaccounted-for Gas (UFG) losses through consumer pricing, which it said discourages utilities from improving operational efficiency. It recommended that the Petroleum Division brief the ECC on planned UFG reduction measures and their financial implications. The ministry also requested the Petroleum Division to inform the ECC whether lifting the moratorium on new gas connections could help address surplus RLNG issues and the curtailment of indigenous gas production. Copyright Business Recorder, 2025
BBC News
20 hours ago
- Business
- BBC News
Financial watchdog launches probe into WoodGroup
Engineering giant Wood Group is being investigated by the UK's financial watchdog following an independent review which found "cultural failings" with its accounting Financial Conduct Authority (FCA) probe will look into the period between January 2023 and November 2024.A Wood Group spokesperson said the company would cooperate fully with the Aberdeen-based group, which provides oilfield and engineering services, warned in April that it had to restate its accounts from previous years. It also delayed the publication of results for the 2024 financial year, which were due at the end of meant its shares have since been suspended from trading on the London Stock Exchange. 'Inappropriate pressure' Earlier this year, an independent review by Deloitte found "material weaknesses and failures in the group's financial culture" within its projects business unit and the engagement with its group finance included "inappropriate management pressure" to maintain previously reported positions and "over-optimism and/or lack of evidence in respect of accounting judgements".The report said: "The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors."Wood Group stressed there has been significant change within the business since the period in question and steps taken to address the failings firm has also been the subject of a takeover approach by Dubai-based buyer latest offer, received in April, valued the company at around £242m.A year ago, Sidara made a £1.56bn takeover approach before talks collapsed. Wood Group's share price subsequently plummeted.
Yahoo
21 hours ago
- Business
- Yahoo
UK's Wood Group discloses investigation by financial regulator
(Reuters) -Wood Group said on Friday Britain's financial watchdog had begun an investigation into the oilfield services provider, following the company's announcement last year of an independent accounting review related to some contracts and charges. Wood Group said the Financial Conduct Authority (FCA) was looking into its operations between January 1, 2023, and November 7, 2024, without giving further details of the review or investigation. The company, also a takeover target for Dubai-based Sidara, said it would "cooperate fully" with the FCA. The agency in a separate statement confirmed its investigation, but did not elaborate. Wood Group in November had agreed with its auditor to conduct an independent review focused on the company's reported positions on certain contracts with customers, as well as some exceptional charges in its interim results. In late April, the company missed a deadline to file annual results for 2024, citing the pending audit conclusion and the timing of the culmination of the review. Wood Group's shares have been suspended from trading since May 1. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
STV News
21 hours ago
- Business
- STV News
Financial watchdog launches investigation into troubled Wood Group
Aberdeen-based engineering firm Wood Group is being investigated by the UK's financial watchdog. The Financial Conduct Authority (FCA) is to investigate the company covering the period from the January 1, 2023 until November 7, 2024. It comes after Wood announced in March that an independent review had found 'material weaknesses and failures in the Group's financial culture'. Wood said it was having to adjust its accounts from the past three financial years after the review. The statement in March also said: 'The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors.' Wood also said it was unlikely to file its accounts for 2024 on time, which means shares in the firm have been suspended from trading on the London Stock Exchange since May. On Friday, Wood said the FCA had launched an investigation, and it would cooperate fully with the regulator. It comes as Wood continues to hold talks with a Dubai-based firm over a possible takeover. Sidara tabled an offer in April which valued the Aberdeen firm at around £242m. Sidara abandoned a deal last August, blaming global market turmoil and geopolitical risks, valuing Wood Group at around £1.56bn. A deadline for a deal to be concluded between the two companies is June 30, 2025. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
