11th May 2016 07:01
LONDON (Alliance News) - John Wood Group PLC said its earnings in 2016 are expected to be around 20% lower than 2015 as the conditions within the oil and gas market remains challenging, but said it intends to significantly increase its dividend this year.
The company, which provides a breadth of services to the oil and gas industry, said it expects earnings before interest, tax and amortisation to be around 20% lower in 2016 than what was generated in 2015, which is in line with current analyst expectations, it said.
"Market conditions remain challenging in 2016, and we have seen further margin pressure in an environment of expected lower activity by operators. Year-to-date financial performance, although down on 2015, continues to benefit from the breadth of our offering, our focus on management of utilisation in response to demand, and structural overhead cost savings," said the company.
John Wood also believes the recent extension to its bank facilities will provide its balance sheet with enough strength to cushion current conditions, and said the facilities will also help with its "longer-term confidence" of its "intention to increase the dividend per share by a double digit percentage in 2016".
By Joshua Warner; [email protected]; @JoshAlliance
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