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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