Wood Group (John) Plc (LON:WG) today announced further progress with its non-core asset disposal programme, having agreed in December 2018 the sale of the following shares in joint ventures:
· 25% share in RMS A13 Holdings Ltd; a UK roadways concession;
· 52% share in Power Machinery Ltd; a China based fabrication and manufacturing facility; and
· 41.65% share in Centro Energia Teverola S.r.l and Ferrara S.r.l two Italian based combined cycle gas power plants.
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.
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.
David Kemp, Wood chief financial officer commented: “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.”