17th Feb 2015 07:40
LONDON (Alliance News) - Oil-services company John Wood Group PLC Tuesday said it increased its dividend for the full year after the company reported a rise in earnings, profit and revenue in 2014, and said it intends to increase the dividend further from 2015 onwards.
For the year ended December 31, John Wood reported a 3.1% rise in earnings before interest, tax and amortization of USD549.6 million, from USD533.0 million in 2013. The rise was caused by increased revenue and by the company's production services unit providing 30% year-on-year growth in EBITA in 2014.
Profit from continuing operations, before tax and exceptional items, rose by 11% to USD414.5 million from USD373.7 million a year earlier.
As a result, John Wood increased its total dividend for 2014 to 27.5 cents per share, a 25% increase from the 22.0 cents per share paid in 2013. The company said it intends to "increase US dollar dividend per share from 2015 onwards by double digit percentage."
John Wood reported a 7.8% rise in revenue to USD7.61 billion in the year ended December 31, compared to USD7.06 billion in the same period in 2013.
John Wood's production services unit provided "strong" EBITA growth of 30% in 2014, driven by its performance in US shale and growth in the UK North Sea, including achieving a high level of contract renewals which is providing "good visibility into 2015 and beyond", said the company.
The company's engineering unit contributed less from its upstream activities in 2014 than in 2013 "as anticipated", whilst its turbine activities business provided a reduction in EBITA, said John Wood.
"The group performed well in 2014, delivering in line with expectations against a backdrop of a steep decline in oil price towards the end of the year," said Chairman Ian Marchant.
"In line with our focus on customer efficiency, we are also implementing internal cost and efficiency measures to ensure we remain competitive. We will remain a reimbursable, asset light business with a balance of operating expenditure and capital expenditure activities, a broad range of longer term contracts and significant customer and geographic diversification," Marchant added.
In 2015, John Wood said it will focus on efficiency, with the aim of achieving cost reductions and deferrals over USD30 million in comparison to 2014, it said.
By Joshua Warner; [email protected]; @JoshAlliance
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