PR Newswire
London, February 1
2 February 2018
Tax and treasury update: impact of US tax changes and improved year end net debt position
US Tax and Jobs Act ("the Act")
We have carried out an initial assessment of the impact of the Act which came into force on 1 January 2018. We anticipate that there will be a one-off, non-cash credit to the P&L in the year ended 31 December 2017 as a result of the revaluation of net deferred tax liabilities.
The cash impact of the reduction in the headline US federal rate to 21% is likely to be offset to some extent by greater restriction on the level of interest deduction allowed in the US also introduced by the Act. The US rate reduction is expected to have a favourable impact on Wood's effective tax rate going forward.
The outcome of the purchase price allocation exercise in respect of the acquisition of Amec Foster Wheeler will impact Wood's effective tax rate and quantitative guidance on Wood's effective rate will be provided at the full year results on 20 March.
Net debt at 31 December 2017
Recognising the risks inherent in our short term forecasting immediately following the acquisition of AFW in October, in the December trading update we conservatively estimated that net debt at the year end would be around $1.8bn. Actual net debt at 31 December was $1.65bn.
Enquiries:
Wood
Andrew Rose - Group Head of Investor Relations 01224 532 716
Ellie Dixon - Investor Relations Manager 01224 851 369
Note to editors:
Wood is a global leader in the delivery of project, engineering and technical services to energy and industrial markets. We operate in more than 60 countries, employing around 55,000 people, with revenues of around $10 billion. We provide performance-driven solutions throughout the asset life-cycle, from concept to decommissioning across a broad range of industrial markets including the upstream, midstream and downstream oil & gas, power & process, environment and infrastructure, clean energy, mining, nuclear and general industrial sectors. We strive to be the best technical services company to work with, work for and invest in. http://www.woodplc.com/
