Headlines
- Total revenue down 17% and Total EBITA down 26% as challenging conditions prevailed in the oil and gas sector. Pricing pressure partly offset by management of utilisation and additional overhead cost savings of c.$50m in the first half. 2015 EBITA benefitted from the release of deferred consideration on acquisitions
- Focus on ongoing reorganisation to enhance customer delivery
- Delayering and back office rationalisation to maximise efficiency
- Prioritisation of utilisation across all levels; group headcount down 10% in 1H16
- Cost efficiency and reorganisation initiatives reflected in exceptional cost of $30m net of tax
- Engineering – Total revenue down 23% and EBITA down 21%. Subdued market in subsea and lower activity in downstream and process plants business. Margin benefitted from legacy engineering projects and the continued focus on utilisation and drive for efficiency
- PSN Production Services – Total revenue down 15% and EBITA down 33%. Continued pressure on volumes, scope and pricing in the North Sea and US onshore in the Americas. Underlying trading margin down c0.8% as cost reductions and efficiencies partly offset the continued pricing pressure from customers
- Strong balance sheet. Net debt, including JVs of $351.4m. Net debt: rolling EBITDA ratio of 0.7x
- Interim dividend of 10.8 cents up 10%. In line with intention to increase the dividend per share by a double digit percentage for 2016
- Unchanged outlook for full year 2016; anticipate full year EBITA down around 20% on 2015, in line with previous guidance
