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Wood Group sells off another US$28mln of joint venture interests

Including the sale of its stake in an Italian wind farm which completed last month, Wood Group has now disposed of US$54mln worth of joint venture holdings in recent months
Wood is on track to generate US$200mln from non-core asset sales

FTSE 100 oil and gas services provider John Wood Group PLC (LON:WG.) has sold off another US$28mln of non-core assets.

The company has agreed to dispose of its 25% interest in UK roadways group RMS A13 Holdings, as well as its 52% stake in a Chinese manufacturing facility and 41.65% share in two gas power plants in Italy.

The disposals will bring in US$28mln, of which US$9mln has already been received. The rest is expected before the end of June.

READ: Wood Group lands US$66mln contract

Wood’s earnings share from the four joint ventures was forecast to be US$8mln this year, although RMS A13 carried with it “significant capital commitments” and an ongoing interest cost of around US$5mln.

Wood’s latest disposals follow hot on the heels of the US$26mln sale of its Italian wind farm joint venture. That deal was struck back in August and officially completed last month.

“Together, these transactions generate cash proceeds of around US$54mln and make a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan,” said chief executive David Kemp.

“Our asset disposal programme is ongoing and remains on track to generate over US$200mln of proceeds.”

Wood Group shares dipped 2.7% to 519.8p in early deals on Monday.

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