LONDON (AFX) - John Wood Group PLC announced a share placing to raise 90 mln usd to fund acquisitions and ramp up spending to take advantage of strong conditions in the oil and gas market.
The company will place up to 24 mln shares, representing around 5 pct of the company's issued share capital.
The company, which provides services to the oil, gas and energy generating industries, revealed the placing alongside in line interim results.
"The board believes that the current strong conditions in the oil & gas market will continue and wishes to maintain the growth strategy of targeted geographic expansion and broadening of the service provision to take advantage of the opportunities," the company said in a statement.
Developments are likely to include acquisitions of local businesses, spending on new facilities and investment in projects with customers. Larger acquisitions and investments in oil & gas and power activities will also be considered, Wood Group said.
In the short term, the proceeds of the placing will be used to reduce net borrowing, reducing gearing from 70 pct to around 46 pct.
Meanwhile pretax profit in the six months ended June climbed to 56.2 mln usd from 18.0 mln in the same period last year, when the group incurred one off impairment and restructuring charges of 24.9 mln usd.
On that basis adjusted diluted earnings improved to 7.8 cents a share, from 5.9 cents.
Revenues advanced 27 pct to 1.33 bln usd, and the half-time dividend was lifted to 1.3 cents, from 1.2.
"The overall oil & gas markets are healthy, with good demand for Wood Group's services," chairman and chief executive Sir Ian Wood said in a statement.
"We are confident 2005 will show strong growth in line with our July trading update and believe that our business development programme will deliver continuing growth in 2006 and beyond."
Separately, the company announced it won two contracts -- a five-year, extendable operations and maintenance deal worth 7 mln usd a year from Sevan Marine in Brazil and a 10 year gas turbine operations and maintenance contract with the Sacramento Municipal Utility District Financing Authority.
Wood Group shares closed at 219.75 pence yesterday, valuing the company at 1.1 bln stg.
amy.brown@afxnews.com
ab/bam
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The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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The company will place up to 24 mln shares, representing around 5 pct of the company's issued share capital.
The company, which provides services to the oil, gas and energy generating industries, revealed the placing alongside in line interim results.
"The board believes that the current strong conditions in the oil & gas market will continue and wishes to maintain the growth strategy of targeted geographic expansion and broadening of the service provision to take advantage of the opportunities," the company said in a statement.
Developments are likely to include acquisitions of local businesses, spending on new facilities and investment in projects with customers. Larger acquisitions and investments in oil & gas and power activities will also be considered, Wood Group said.
In the short term, the proceeds of the placing will be used to reduce net borrowing, reducing gearing from 70 pct to around 46 pct.
Meanwhile pretax profit in the six months ended June climbed to 56.2 mln usd from 18.0 mln in the same period last year, when the group incurred one off impairment and restructuring charges of 24.9 mln usd.
On that basis adjusted diluted earnings improved to 7.8 cents a share, from 5.9 cents.
Revenues advanced 27 pct to 1.33 bln usd, and the half-time dividend was lifted to 1.3 cents, from 1.2.
"The overall oil & gas markets are healthy, with good demand for Wood Group's services," chairman and chief executive Sir Ian Wood said in a statement.
"We are confident 2005 will show strong growth in line with our July trading update and believe that our business development programme will deliver continuing growth in 2006 and beyond."
Separately, the company announced it won two contracts -- a five-year, extendable operations and maintenance deal worth 7 mln usd a year from Sevan Marine in Brazil and a 10 year gas turbine operations and maintenance contract with the Sacramento Municipal Utility District Financing Authority.
Wood Group shares closed at 219.75 pence yesterday, valuing the company at 1.1 bln stg.
amy.brown@afxnews.com
ab/bam
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
