(Alliance News) - John Wood Group PLC on Tuesday said it swung to a loss in 2022 due to a heavy exceptional impairment charge, as it failed to resume dividend payments.
The Aberdeen, Scotland-based energy sector-focused engineering and consulting business reported 2022 revenue of USD5.43 billion, increasing 4.3% from USD5.21 billion in 2021. The company said that despite growth in consulting and operations, there was a 6% decline in expected projects, which partially offset growth.
Pretax loss was USD694.5 million, widening from a loss of USD172.0 million a year ago. The company noted that it saw an exceptional impairment charge of USD542.3 million, triggered by its disposal of its Built Environment consulting business, increases in discount rates and lower expectations of profitability.
Basic loss per share was 104.4 US cents, widening from a loss of 32.2 cents.
The company did not resume its dividend payments, unchanged from a year ago, with any resumption of dividends dependent on the profitability of the company.
The company said it expects revenue growth, with performance likely to be weighted in the second half of 2023, with performance anticipated to be in line with medium term expectations.
Chief Executive Officer Ken Golmartin said: "We are pleased to have delivered results in line with expectations for 2022, including a return to revenue growth - with 8% growth at constant currency. This was achieved in a year of major change for the group, under new leadership, as we addressed legacy issues, transformed our balance sheet and launched a new strategy.
"Our strategy is already delivering. We started 2023 with good momentum - our order book for delivery in 2023 is up 10%, headcount is up 8% and financial guidance for 2023 is in line with our medium-term financial targets of adjusted [earnings before interest, taxes, depreciation and amortization] growth at mid to high single digit [compound annual growth rate], with momentum building as our strategy delivers."
John Wood shares fell 2.8% to 197.30 pence each in London on Tuesday morning.
By Harvey Dorset, Alliance News reporter
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