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Wood, the FTSE 250 energy services group, has announced a return to growth for 2018, but warned that the slow recovery of its core oil and gas business meant that its debt reduction program this year would be "more gradual than expected. ".
The group said it had completed in advance the integration of Amec Foster Wheeler, its rival acquired in 2017 to diversify away from the oil and gas sector, generating revenue synergies of more than 600 millions of dollars.
Wood had not seen his earnings rise since the oil price plummeted in 2014, but had previously indicated that he was expecting a "modest" earnings growth in 2018, driven by the recovery oil and gas markets.
This figure was reached on Tuesday indicating that revenues in 2018 were up 85% to $ 10.01 billion on a statutory basis, while pre-tax profit was $ 261.2 million. , up from $ 177.4 million in 2017. up 69% to $ 630 million, which, according to the group, was ahead of market expectations.
The energy group reduced its debt level from $ 2 billion at the end of the AFW transaction in October 2017 to $ 1.5 billion at the end of 2018, or about 2.2 times its adjusted EBITDA.
Reaching its target debt of 1.5 times adjusted EBITDA would be "more gradual than expected", citing however "the impact of the slowing recovery of the oil and gas sector since the completion", the working capital commitments on the AEGIS contract and slower progress on disposals of non-core badets.
Robin Watson, Managing Director of Wood, said, "The wood has registered good organic growth in 2018. We have completed the integration of AFW at the rate, increased the cost synergy goals by 24% and created new opportunities in our broader range of capabilities and sectors to generate revenue. synergies of more than $ 600 million. "
He added that his high operating cash flow has resulted in a net debt reduction of $ 450 million since the completion of the AFW acquisition and the payment of $ 231 million of dividends in 2018.
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