John Wood increases its 2016 full year dividend by 10%

DividendMax Ltd.

John Wood increases its 2016 full year dividend by 10%
  • Oil & gas markets remained very challenging in 2016; lower oil prices endured and activity fell
  • EBITA of $363m in line with expectations2, down 22.8% on 2015. Adjusted EPS of 64.1c down 23.7%.
  • Despite lower volumes and pricing pressure, impact on EBITA and margin partly offset by:
    - Robust management of utilisation and decisive action on cost: headcount down 18%, overheads reduced by a further $96m
    - Commercial contract close outs on significant and legacy projects contributed $29m of EBITA
  • Balance sheet remains robust: Net debt, including JVs of $331m. Net debt to EBITDA of 0.8x
  • Proposed dividend up 10% in line with stated intention. Dividend cover of 1.9 times (2015: 2.8 times). Intention is to pursue a progressive dividend policy from 2017, taking into account cash flows and earnings
  • Exceptional costs of $140m net of tax include $89m in respect of further impairment and restructuring of EthosEnergy and charges in respect of reorganisation, delayering and back office rationalisation in our core business
  • Oil & gas market continues to present challenges in 2017. Modest recovery anticipated only in selected areas such as US onshore and greenfield offshore projects
  • One Wood Group reorganisation together with sustainable overhead savings position the Group well for the longer term

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