LONDON (dpa-AFX) - Energy services company Wood Group (John) plc (WG.L, WDGJF.PK) Wednesday said it expects fiscal 2017 EBITA, comprising the heritage Wood Group business and a contribution from Amec Foster Wheeler or AFW for the three months, will be in the region of $335 million to $355 million.
On a pro forma basis, including the results of AFW and heritage Wood Group from January 1, the company currently estimates that 2017 Proforma EBITA from continuing businesses will be in the region of $590 million to $610 million.
The pro forma outlook reflects the current trading conditions and typical second half weighting of profit in both heritage Wood Group and AFW.
In its pre-close trading update for the year to December 31, 2017, the company noted that it generated EBITA of $264 million from revenues of $4.7 billion on a proforma basis in the first half.
Margins continued to be impacted by challenges in oil & gas markets overall and the anticipated reduction in AFWs solar activity from record levels in 2016. These challenges were largely offset by growth elsewhere including Environment and Infrastructure, improvements in US offshore greenfield engineering and the impact of cost reduction programmes.
As previously announced, full year results will be released on March 20, 2018.
Further, the company said it retains progressive dividend policy and increased the first half dividend by 3%. Former AFW holders will be entitled to the full year dividend.
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