22nd Feb 2022 08:59
(Alliance News) - John Wood Group warned it will take a USD100 million exceptional charge against 2021 results, related to a project that came with its acquisition of Amec Foster Wheeler.
The Aberdeen, Scotland-based consulting and engineering firm said USD20 million of that will be in cash to complete the Aegis Poland project, with the rest being non-cash charges for "expected recovery from the customer and the legal costs needed to achieve such recovery".
John Wood bought oil-field services peer Amec Foster Wheeler in 2018. The Aegis Poland project involves the construction of buildings to house the Aegis Ashore anti-missile defence facility for the US Army Corps of Engineers. The original contract was signed in 2016 at a fixed price.
The company said the project was 90% complete at the end of 2021 and will be operationally complete in the second half of 2022. Loss at completion is expected to be USD222 million, revised up from USD133 million at the half-year stage of 2021.
John Wood will delay its annual results from the originally scheduled March 8 in order to allow for the audit process related to the project.
However, the company said that its underlying results for 2021 and outlook for 2022 remain unchanged from the trading update it provided in January.
John Wood shares were down 12% at 199.25 pence early Tuesday in London.
By Tom Waite; [email protected]
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