Disposal of Interests in Non-Core Assets

RNS Number : 1864O

Wood Group (John) PLC

28 January 2019

 

28 January 2019

Wood reaches agreement to dispose of interests in non-core assets

Wood today announces further progress with its non-core asset disposal programme, having agreed in December 2018 the sale of the following shares in joint ventures:

·	25% share in RMS A13 Holdings Ltd; a UK roadways concession;
·	52% share in Power Machinery Ltd; a China based fabrication and manufacturing facility; and
·	41.65% share in Centro Energia Teverola S.r.l and Ferrara S.r.l two Italian based combined cycle gas power plants.

Cash proceeds in respect of these disposals are expected to be around $28m, of which $9m was received in December with the remainder anticipated in the first half of 2019.

Wood also announces completion of the disposal of its 50% interest in the Voreas S.r.l. wind farm joint venture in Italy announced in August 2018, with cash proceeds of c$26m received in December 2018. 

Wood's share of EBITA from the four joint ventures was forecast to be c$8m for the year ended 31 December 2019. Wood's share in RMS A13 Holdings Ltd carried with it significant capital commitments and an ongoing interest cost of around $5m.

David Kemp, Wood chief financial officer commented: "Together, these transactions generate cash proceeds of around $54m and make a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.  Our asset disposal programme is ongoing and remains on track to generate over $200m of proceeds."

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Note to Editors:

Wood is a global leader in the delivery of project, engineering and technical services to energy and industrial markets. We operate in more than 60 countries, employing around 60,000 people, with revenues of around $10 billion.  We provide performance-driven solutions throughout the asset life cycle, from concept to decommissioning across a broad range of industrial markets, including the upstream, midstream and downstream oil & gas, power & process, environment and infrastructure, clean energy, mining, nuclear, and general industrial sectors. We strive to be the best technical services company to work with, work for and invest in. www.woodplc.com 

For further information contact:  [e-mail]

 

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