Wood Group settles long-standing legal action for US$115mln

Wood Group settles long-standing legal action for US$115mln

Wood Group (John) PLC will pay US$115mln to settle a long-standing legal action brought by Enterprise Products Operating LLC.

In 2016, Enterprise filed a lawsuit against Amec Foster Wheeler, a company Wood acquired in 2017, and 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.

Settlement has now been agreed and will be paid in one instalment within the next seven days.

John Wood said it expects net debt to be around the middle of its target range of 0.5x to 1.5x net debt, including the payment of this settlement and the planned decision to use part of the proceeds of the Built Environment Products sale to normalise working capital.

Published: 14-11-2022