Wood losses narrow as revenue jumps; dividend raised 2%
Source - SMW
Services company Wood Group posted an annual loss after rising revenue was more than offset by one-off costs including restructure charges and writedowns.
Net losses for the year through December amounted to $7.6m, narrowing from losses of $30m on-year.
Revenue jumped 79% to $11.04bn, while operating profit before exceptional items rose 68% to $357.0m.
Exceptional costs of $183m were related to synergy delivery, restructuring, impairment of EthosEnergy and pension costs.
The company declared a full-year dividend of 35.0c per share, up 2.0% on-year.
'Wood delivered good organic growth in 2018,' chief executive Robin Watson said.
'We completed the integration of AFW at pace, increased cost synergy targets by 24% and unlocked new opportunities across our broader range of capabilities and sectors to secure revenue synergies of over $600m.'
'We have delivered strong operational cashflow which has supported both a reduction in net debt of $450m since completion of the acquisition of AFW, and the payment of $231m in dividends in 2018.'
'We have built a unique platform and are in the early stages of what we can achieve.'
'Our performance in 2018 has strengthened our conviction in Wood's potential and we are excited about our prospects.'
'We are confident of achieving further growth in 2019.'