Operational headlines Very challenging market conditions in oil & gas Actions taken to offset lower activity and pricing pressure Reducing customer project costs and increasing efficiency Strict focus on utilisation; headcount down…
2015 Interim Results Financial review David Kemp - CFO
Financial headlines Total revenue down 19% to 3.1bn Total EBITA down 7% to 226m AEPS down 10% to 40.1c Improved Total EBITA Margin - up 100 bps to 7.4% Improved cash generation from operations - up 65% to 225m Strong balance sheet…
Financial results 1H 2015 m 1H 2014 m Change % Total revenue1 3,069 3,801 (19.3%) Total EBITA1 226 244 (7.4%) EBITA margin 7.4% 6.4% 1.0pts Amortisation (54) (50) Total operating profit pre exceptional items 172 194 (11.3%) Net…
Focussing on what we can control Direct costs Strict focus on utilisation Contractor rate cuts High Value Engineering Centres (HVECs) Working together with customers towards further efficiencies Internal overhead cost Delivered…
Wood Group PSN Production Services 1H 2015 1H 2014 Change % Americas (c.40% of revenue) m m US onshore facing volume and pricing pressure Production Services following strong growth in 2014 Revenue 1,833 2,342 (21.7%) Opex…
Wood Group PSN Turbine Activities 1H 2015 1H 2014 Change % m m Turbine Activities Revenue Turbine JVs 328 422 (22.4%) Dorad/GWF - 18 n/m Total Revenue 328 440 (25.5%) EBITA Lower oil & gas business related revenues Turbine…
Wood Group Engineering 1H 2015 1H 2014 Upstream (c.35% of revenue) Change % m m Ivar Aasen and Hess Stampede underpinning 2015 Revenue 908 1,020 (10.9%) Very subdued market for detailed design awards EBITA 102 109 (6.5%) High volume…
Cash flow and net debt 1H 2015 1H 2014 FY 2014 m m m Cash generated pre working capital 242 330 651 (excl. JVs)3 Working capital movements (17) (193) (80) Cash generated from operations 225 137 571 Acquisitions and deferred…
Financial headlines Total revenue down 19% to 3.1bn Total EBITA down 7% to 226m AEPS down 10% to 40.1c Improved Total EBITA Margin - up 100 bps to 7.4% Improved cash generation from operations - up 65% to 225m Strong balance sheet…
2015 Interim Results Responding to a challenging market Bob Keiller - CEO
PSN : improving productivity and extending asset lives Improving offshore productivity in the North Sea Defining the Ideal Supervisor Repair order factory 14
Engineering: enabling project execution efficiency Leading position, unique breadth of experience and capability Design catalogue - proven designs fine tuned for specific needs Design One, Build Two Lucius and Heidelberg Schedule…
1H awards highlight breadth, diversity and track record US: North Sea: Flint Hills Antin Infrastructure Partners 250m CATs dutyholder Resources 75m Detailed design Middle East: Saudi Aramco 6 year OMP contract US: ETC Dakota…
Positioning for the future Focused on remaining competitive and protecting our capability Managing utilisation and reducing overheads Delivering lower project costs and increasing operating efficiency for customers Maintaining a…
Appendix 18
Revenue and EBITA by SBU 1H 2015 m 1H 2014 m Revenue EBITA Margin Revenue EBITA Margin Wood Group PSN Production Services 1,833 133 7.3% 2,341 163 7.0% Wood Group PSN Turbine Activities 328 18 5.5% 440 - nm Wood Group Engineering…
Like for like revenue and EBITA 1H 2015 m 1H 2014 m Revenue EBITA Margin Revenue EBITA Margin Wood Group PSN Production Services 1,833 133 7.3% 2,239 162 7.2% Wood Group PSN Turbine JVs 328 18 5.5% 422 (1) n/m Wood Group…
Reconciliation of operating profit (pre-exceptionals) 1H 2015 m 1H 2014 m EBIT 172 194 Tax and interest charges on JVs included within (5) (7) operating profit but not EBITA Impact of discontinued activities - 4 Operating profit…
Exceptional gain 1H 2015 1H 2014 m m Venezuela Settlement - (58) Integration and restructuring charges - 7 Onerous contract (4) - Transaction related costs - 23 Total exceptional gain (4) (28) Tax - 12 Total exceptional gain…
Amortisation 1H 2015 1H 2014 m m Amortisation on software, development costs 27 19 and licenses Amortisation of intangible assets arising on 27 31 acquisition 54 50 23
Tax 1H 2015 1H 2014 m m Profit from continuing operations before tax 160 184 Tax charge 43 50 Effective tax rate on continuing operations 27.0% 27.4% Tax charge includes 3.9m in relation to joint ventures (1H 2014: 6.1m) Tax…
Finance expense 1H 2015 1H 2014 m m Interest on debt including fees 7 10 Interest and fees on US private placement debt 7 - Total finance expense 14 10 Finance income (2) (1) Net finance expense 12 9 Interest cover was 19.3…
Net debt and interest cover June 2015 June 2014 m m Average gross debt6 581 589 Average net debt6 291 390 Closing gross debt 572 637 Closing net debt (incl JVs) 277 427 Net Debt:EBITDA 0.5x 0.8x Interest cover 19.3x 25.7x…
ROCE June 2015 June 2014 m m Net operating assets7 2,854 3,011 Net borrowings (276) (451) Net assets 2,578 2,560 Non controlling interests (16) (10) Shareholders funds 2,562 2,550 ROCE8 15.4% 16.0% 27
Footnotes Note 1: Performance is presented on a proportionally consolidated basis. Total Revenue and Total EBITA presented in these slides include the contribution from joint ventures and activities classified as discontinued in 2014,…
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