Wood agrees $115m settlement with Enterprise
Aberdeen-based energy services company Wood will pay Enterprise Products $115 million to settle a legacy lawsuit against Amec Foster Wheeler, a company Wood acquired in 2017.
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.
The payment will be made in one instalment within the next seven days.
Wood said it expects to be around the middle of its target range of 0.5x to 1.5x net debt (excluding leases) to EBITDA at 31 December 2022.
This includes the payment of this settlement and the planned decision to use part of the proceeds of the Built Environment sale to normalise our working capital.