23rd Feb 2016 07:50
LONDON (Alliance News) - John Wood Group PLC Tuesday said it plans to continue growing its dividend despite reporting a large decline in profit in 2015 as the ongoing rout in the oil and gas sector continues.
The FTSE 250-listed oilfield services and engineering firm saw its pretax profit from continuing operations in 2015 plummet to USD138.6 million from USD475.1 million as revenue fell to USD5.85 billion from USD7.61 billion.
However, John Wood still significantly raised its dividend for the year to 30.3 cents per share - more than 10% above the 27.5 cents paid in 2014.
More importantly, the company said there is "no change to our dividend approach" and said it intends to grow the dividend this year by a "double-digit percentage".
Earnings before interest, tax and amortisation in 2015 fell by 15% to USD469.7 million from USD549.6 million, as the Ebita margin increased to 8% from 7.2%, mitigating some of the fall in revenue in the period.
John Wood said it was a "relatively resilient performance" that was in line with expectations but warned the tough trading conditions in 2015 have continued into the first quarter of 2016.
By Joshua Warner; [email protected]; @JoshAlliance
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