REG-Wood Group (John)PLC: Statement re tax & treasury update <Origin Href="QuoteRef">WG.L</Origin>

John WoodAnnouncement

02/02/2018 07:00

2 February 2018

Tax and treasury update : impact of US tax changes and improved year end net
debt position

US Tax and Jobs Act (“the Act”)

We have carried out an initial assessment of the impact of the Act which came
into force on 1 January 2018.  We anticipate that there will be a one-off,
non-cash credit to the P&L in the year ended 31 December 2017 as a result of
the revaluation of net deferred tax liabilities.

The cash impact of the reduction in the headline US federal rate to 21% is
likely to be offset to some extent by greater restriction on the level of
interest deduction allowed in the US also introduced by the Act. The US rate
reduction is expected to have a favourable impact on Wood’s effective tax
rate going forward.

The outcome of the purchase price allocation exercise in respect of the
acquisition of Amec Foster Wheeler will impact Wood’s effective tax rate and
quantitative guidance on Wood’s effective rate will be provided at the full
year results on 20 March.

Net debt at 31 December 2017

Recognising the risks inherent in our short term forecasting immediately
following the acquisition of AFW in October, in the December trading update we
conservatively estimated that net debt at the year end would be around $1.8bn.
Actual net debt at 31 December was $1.65bn.

Enquiries:

Wood

Andrew Rose – Group Head of Investor
Relations                                       
01224 532 716

Ellie Dixon – Investor Relations
Manager                                                     
01224 851 369

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 55,000 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. http://www.woodplc.com/



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