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John Wood Group PLC on Monday said it has reached a settlement in a legal dispute with Enterprise Products Operating LLC.
John Wood, an energy sector-focused engineering and consulting business based in Aberdeen, Scotland, has agreed to pay $115 million to settle the case. This will be paid in one instalment within the next seven days, it said.
In 2016, Enterprise filed a lawsuit against Amec Foster Wheeler PLC, a company that John Wood acquired in 2017 and now one of its subsidiaries.
It related to alleged cost increases and delays on a cost reimbursable plus fixed fee contract secured in 2013 to engineer, procure and construct a propane dehydrogenation unit in Mont Belvieu, Texas.
Including this legal settlement settlement and the planned decision to use part of the proceeds from the September sale of Built Environment to normalise working capital, John Wood expects to be around the middle of its target 0.5 times to 1.5 times net debt to earnings before interest, tax, depreciation and amortisation.
Shares in John Wood were trading 1.0% lower at 157.40 pence each in London on Monday afternoon.
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