John Wood group increases its 2015 full year dividend by 10%
Relatively resilient performance. EBITA of $470m in line with expectations; 14.5% lower than 2014
Management focus on operational utilisation
Delivered overhead cost savings of $148m which will sustain into 2016
Underlying headcount reduced by over 8,000 people (c. 20%)
Continued progress on strategic acquisitions including expansion into the US brownfield petrochemical market. Total cash expenditure on new acquisitions of $234m
Engineering – Impact of Upstream and Subsea project deferrals and cancellation partly offset by growth in Downstream and robust performance in Onshore Pipelines
PSN Production Services – North Sea impacted by reduction in project and non-essential maintenance work and operator efficiency initiatives. US onshore impacted by significant pressure on volumes and pricing following strong 2014
PSN Turbine Activities – Previously indicated exceptional non-cash impairment of EthosEnergy of $159m
Strong balance sheet and cash generation. Net debt of $290m (0.5x 2015 EBITDA) and cash conversion of 119%
Dividend up 10%. Dividend cover of 2.8 times. Intention remains to increase the dividend for 2016 by a double digit percentage.
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