- Performance demonstrates resilience and flexibility in challenging markets
‘Against a backdrop of significantly reduced customer activity, the Group delivered EBITA of $470m in line with expectations and 14.5% lower than 2014. Our continued actions to reduce costs, improve efficiency and broaden our service offering through organic initiatives and strategic acquisitions, position us as a strong and balanced business in both the current environment and for when market conditions recover.’ – Robin Watson, Chief Executive
|Revenue from continuing operations on an equity accounting basis||5,000.6||6,574.1||(23.9)%|
|Profit from continuing operations before tax and exceptional items (after tax on JV profits) on an equity accounting basis||320.2||414.5||(22.8)%|
|Profit from continuing operations before tax after exceptional items (after tax on JV profits) on an equity accounting basis||138.6||475.1||(70.8)%|
|Adjusted diluted EPS||84.0c||99.6c||(15.7)%|
- Relatively resilient performance. EBITA of $470m in line with expectations; 14.5% lower than 2014
- Management focus on operational utilisation
- Delivered overhead cost savings of $148m which will sustain into 2016
- Underlying headcount reduced by over 8,000 people (c. 20%)
- Continued progress on strategic acquisitions including expansion into the US brownfield petrochemical market.
- Total cash expenditure on new acquisitions of $234m
- Engineering – Impact of Upstream and Subsea project deferrals and cancellation partly offset by growth in Downstream and robust performance in Onshore Pipelines
- PSN Production Services – North Sea impacted by reduction in project and non-essential maintenance work and operator efficiency initiatives. US onshore impacted by significant pressure on volumes and pricing following strong 2014
- PSN Turbine Activities – Previously indicated exceptional non-cash impairment of EthosEnergy of $159m
- Strong balance sheet and cash generation. Net debt of $290m (0.5x 2015 EBITDA) and cash conversion of 119%
- Dividend up 10%. Dividend cover of 2.8 times. Intention remains to increase the dividend for 2016 by a double digit percentage.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
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