LONDON (dpa-AFX) - Energy services company Wood Group (John) Plc. (WG.L) announced further progress with its non-core asset disposal programme, having agreed in December 2018 the sale of the 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.
The company expects cash proceeds in respect of these disposals expected to be around $28 million, of which $9 million was received in December with the remainder anticipated in the first half of 2019.
Wood also announced 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 $26 million received in December 2018.
Wood's share of EBITA from the four joint ventures was forecast to be $8 million 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 $5 million.
David Kemp, Wood chief financial officer said, '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.'
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