Headlines
- 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.
