Global engineering business Wood Group has sold its interest in TransCanada Turbines, offloading a stake worth $67m to its joint venture partner TC Energy.
The cash proceeds from the Canadian gas turbine group's sale will be used to reduce debt.
The deal represented a multiple of about 7.6 times Wood's share of expected 2020 earnings before interest, tax, depreciation and amortisation.
Chief financial officer David Kemp said: “Our focus on portfolio optimisation is driven by our strategic objective of building a premium, differentiated, higher margin business focused on energy and built environment markets.”
The Aberdeen-based energy and engineering services company’s half-year results in August showed that $70 worth of cost cutting had been made, as part of actions to deliver $200m of overhead savings.
Net debt excluding leases was down to $1.22bn at the end of June, from $1.77bn the same time last year and $1.42bn at the end of 2019;.
At the time Wood announced that there would be no interim dividend while the uncertainty arising from Covid-19 and oil price volatility persists.
