Wood Group reports EBITA of $470m in 2015; 14.5% lower than 2014

Performance demonstrates resilience and flexibility in challenging markets

ABERDEEN, 26-Feb-2016 — /EuropaWire/ — “Against a backdrop of significantly reduced customer activity, the Group delivered EBITA of $470m in line with expectations and 14.5% lower than 2014. Our continued actions to reduce costs, improve efficiency and broaden our service offering through organic initiatives and strategic acquisitions, position us as a strong and balanced business in both the current environment and for when market conditions recover.” – Robin Watson, Chief Executive

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.

Notes:

¹ Total Revenue and Total EBITA include the contribution from joint ventures and, in 2014, activities classified as discontinued. Total EBITA represents operating profit including JVs on a proportional basis before the deduction of amortization and net exceptional expense and is provided as it is a key unit of measurement used by the Group in the management of its business. See further detailed footnotes following the Financial Review.

Enquiries:

Wood Group

Andrew Rose – Group Head of Investor Relations
Laura McCracken – Investor Relations Manager
Carolyn Smith – Group Head of Communications +44 1224 851 000

Brunswick

Patrick Handley +44 20 7404 5959
Charles Pemberton

There will be an analyst and investor presentation at 60 Victoria Embankment, London, EC4Y 0JP at 09.00. Early registration is advised from 08.30.

A live webcast of the presentation will be available from www.woodgroup.com/investors. Replay facilities will be available later in the day.