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WG. - John Wood News Story

148.55p -7.1  -4.6%

Last Trade - 01/04/20

Market Cap £1.02bn
Enterprise Value £2.67bn
Revenue £7.99bn
Position in Universe 340th / 1834

UPDATE 1-Wood Group to sell industrial services unit to pare debt

Wed 5th February, 2020 5:34pm
(Adds details on past deal, CFO quote)
    Feb 5 (Reuters) - Oilfield services provider John Wood Group
Plc  WG.L  said on Wednesday it had agreed to sell its
industrial services business to technical services provider
Kaefer for an initial cash consideration of about $104 million. 
    Aberdeen-headquartered Wood said the deal includes a further
potential payment of up to $14 million when agreed upon
financial goals are met. Sale proceeds will be used to cut debt,
the company added.  urn:newsml:reuters.com:*:nRSE1137Ca
    "As our focus has moved towards building a premium,
differentiated and higher-margin business, the industrial
services offering is no longer core to our strategy," Chief
Financial Officer David Kemp said in a statement.
    The divestment of the unit, which reported a pretax profit
of $8 million in 2018, follows the announced sale of its nuclear
energy business for about $305 million to Jacob Engineering
 J.N  last year to reduce its debt burden. 
    Britain's competition watchdog has been assessing if the
proposed Wood Nuclear sale would hurt competition in the UK or
other markets.  urn:newsml:reuters.com:*:nL4N29D39X
    Wood's debt surged in 2017 when it paid $2.7 billion for
Amec Foster Wheeler to expand into the U.S. onshore shale oil
and gas sector. 
    The company, which has already sold some of its non-core
assets, said last month it had trimmed debt below $1.5 billion
by end-2019, from $1.77 billion at June-end.  urn:newsml:reuters.com:*:nL4N29L208
    Wood's industrial services business provides fabric
maintenance for marine, process energy, offshore oil and gas and
infrastructure sectors in Britain and Ireland.
    

 (Reporting by Noor Zainab Hussain in Bengaluru;
Editing by Vinay Dwivedi)
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810;
Outside UK +91 80 6182 2663 or +91 80 3796 2663 ;))
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