John Wood Group on track to raise dividend

John Wood Group expects to hit all of its targets for the full-year 2015, including a double-digit increase to its dividend.

In a pre-close trading update, the oil field services company said full-year earnings before interest, taxes and amortisation would be in-line with its own guidance for around $465m (£308m).

That would mark a 15.4% fall in operating profits when measured versus last year’s figure of $549.6m.

Management highlighted the strength of the company’s balance sheet and cash-flow.

Net debt was expected to finish the year at about 0.5 times earnings before interest, taxes, depreciation and amortisation.

“Our balance sheet and cash-flow generation remain strong, supporting the delivery of strategic acquisitions and our previously stated intention to increase the dividend by a double digit percentage in 2015.”

“Ongoing dividends, organic investment and M&A remain our preferred uses of cash,” the company said.

As of 08:45 shares in Wood Group were 2.08% higher to 564p.