The Wood Group has settled a legacy lawsuit with Enterprise Products Operating for $115m - to be paid this week in one installment.
This relates to a case filed in 2016 by Enterprise against Amec Foster Wheeler, a company Wood acquired in 2017, and one of its subsidiaries.
It 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.
Wood's stock exchange statement noted that it expects to be around the middle of the target range of 0.5x to 1.5x net debt - excluding leases - to earnings before tax at the end of this year.
This includes the payment of the Enterprise settlement and the planned decision to use part of the proceeds of the recent built environment division sale to normalise working capital.
The group will hold a capital markets day on 29 November to outline its updated strategy in detail, following the completion of the sale of the consulting business in September.
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