John Wood Group increases its 2017 interim dividend by 3% in dollar terms

DividendMax Ltd.

John Wood Group increases its 2017 interim dividend by 3% in dollar terms

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

Companies mentioned