21st Oct 2021 10:10
(Alliance News) - John Wood Group PLC on Thursday said it has signed a new USD1.2 billion, five-year committed sustainable revolving credit facility with a group of 16 relationship banks.
The financial covenants and lending margin on the new facility are the same as the existing facility. The new facility also includes key performance indicators linked to growing export revenue related to energy transition and sustainable infrastructure, and reductions in carbon emissions.
The Aberdeen, Scotland-based consulting & engineering company explained that the new facility extends the maturity profile of its debt facilities.
"This new facility reflects the continued strength of support from our relationship banks and their confidence in Wood and our strategy. The group now has a balanced portfolio that maintains Wood's strong liquidity and financial headroom in line with our conservative approach to debt financing arrangements," said Chief Financial Officer David Kemp.
FTSE 250-listed John Wood Group shares were trading 1.1% lower in London on Thursday at 234.10 pence each.
At the end of August, the company reported a pretax profit of USD18.4 million for the six months ended June 30, sharply up from USD900,000 a year prior. The improvement was driven by a fall in interest payments on bank borrowings because of lower rates.
Revenue totalled USD3.15 billion, down 23% from USD4.09 billion. The decline was attributed to the damage caused by Covid-19 and a USD74 million reduction in revenue from sold businesses.
By Evelina Grecenko; [email protected]
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