Wood makes progress with $200m assets sale

Aberdeen-based engineering and oil services giant Wood plc on Monday announced further progress with its $200m non-core asset disposal programme.

In December, Wood agreed the sale of a 25% share in UK roadways concession RMS A13 Holdings Ltd, a 52% share in China-based fabrication and manufacturing facility Power Machinery Ltd, and a 41.65% share in Italian-based gas power plants Centro Energia Teverola S.r.l and Ferrara S.r.

“Cash proceeds in respect of these disposals are expected to be around $28m, of which $9m was received in December with the remainder anticipated in the first half of 2019,” said Wood.

“Wood also announces completion of the disposal of its 50% interest in the Voreas S.r.l. wind farm joint venture in Italy announced in August 2018, with cash proceeds of c$26m received in December 2018.

“Wood’s share of EBITA from the four joint ventures was forecast to be c$8m for the year ended 31 December 2019.

“Wood’s share in RMS A13 Holdings Ltd carried with it significant capital commitments and an ongoing interest cost of around $5m.”

Wood chief financial officer David Kemp said: “Together, these transactions generate cash proceeds of around $54m and make a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.  

“Our asset disposal programme is ongoing and remains on track to generate over $200m of proceeds.”

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