Engineering contractor Amec Foster Wheeler PLC (LON:AMFW), which in March agreed to an around £2.225bn recommended all-share from oilfield support services group John Wood Group PLC (LON:WG.) has confirmed the extent of its troubles in final results today.
The FTSE 250-listed firm, which suspended plans for a £500mln cash call as a result of the takeover move, reported a headline pre-tax loss of £542mln for the full-year to December 31 2016, up from a £235mln loss in 2015.
LON:AMFW), which in March agreed to an around £2.225bn recommended all-share from oilfield support services group John Wood Group PLC (LON:WG.) has confirmed the extent of its troubles in final results today. The FTSE 250-listed firm, which suspended plans for a £500mln cash call as a result of the takeover move, reported a headline pre-tax loss of £542mln for the full-year to December 31 2016, up from a £235mln loss in 2015. READ: Wood Group launches recommended offer for AMFW The loss came after an intangibles and impairment charge of £542mln, up from £444mln charge in 2015, with its adjusted pre-tax profit 24% lower at £254mln The group saw its revenues decline to £5.44bn, down from £5.455bn in 2015, an 8% decline excluding currency movements. Jon Lewis, AMFW’s CEO said: "Given conditions in natural resources end markets, our 2016 trading performance was robust, as we benefited from the breadth of our business - especially the record performance from solar - cost saving actions and the fall in sterling in the second half of the year.” He added: "We continue to expect another year of decline in oil and gas activity in 2017 and for solar activity to reduce significantly from the record levels seen in 2016. It is also expected that there will be a better performance from environment and infrastructure and a further significant contribution from standalone overhead cost savings.” The group which is paying no final dividend, giving a total payout for 2016 of 7.4p, down from 29.0p a year earlier, said it expected a shareholder vote on the Wood Group takeover bid in June." onclick="window.open(this.href, '', 'resizable=no,status=no,location=no,toolbar=no,menubar=no,fullscreen=no,scrollbars=no,dependent=no'); return false;">READ: Wood Group launches recommended offer for AMFW
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The loss came after an intangibles and impairment charge of £542mln, up from £444mln charge in 2015, with its adjusted pre-tax profit 24% lower at £254mln
The group saw its revenues decline to £5.44bn, down from £5.455bn in 2015, an 8% decline excluding currency movements.
Jon Lewis, AMFW’s CEO said: "Given conditions in natural resources end markets, our 2016 trading performance was robust, as we benefited from the breadth of our business - especially the record performance from solar - cost saving actions and the fall in sterling in the second half of the year.”
He added: "We continue to expect another year of decline in oil and gas activity in 2017 and for solar activity to reduce significantly from the record levels seen in 2016. It is also expected that there will be a better performance from environment and infrastructure and a further significant contribution from standalone overhead cost savings.”
The group which is paying no final dividend, giving a total payout for 2016 of 7.4p, down from 29.0p a year earlier, said it expected a shareholder vote on the Wood Group takeover bid in June.