John Wood Group 2017 interim results
- Recovery in certain markets despite tough conditions in the oil and gas sector overall
- Asset Life Cycle Solutions West – Robust performance including improved activity in offshore greenfield project engineering and commissioning and modest improvement in US onshore activity
- Asset Life Cycle Solutions East - weaker activity with significant reduction in projects & modifications work, particularly in the North Sea
- Specialist Technical Solutions - Growth in automation and robust activity in technology related work, offset by weaker performance in subsea
- Impact of tougher pricing environment largely offset by enduring sustainable structural cost reductions
- Overhead costs down $44m from H1 2016
- Profit for the period is stated after exceptional costs of $48m, including $25m in respect of the acquisition of Amec Foster Wheeler
- Strong financial position. Net debt of $490m and Net debt : EBITDA of 1.2x
- Interim dividend up 3% in line with our progressive policy
- Amec Foster Wheeler to complete in Q4:
- Accelerates Wood Group’s strategy
- Will deliver significant cost synergies of at least $170m
- Competition & Markets Authority (“CMA”) approved UK remedy in principle with no upfront buyer requirement
