British oil and gas services company Amec Foster Wheeler Plc said it would sell its Global Power Group unit as it exits some of its non-core assets and halve its net debt in the next 15 months.
The move comes amid the collapse in oil prices pressures balance sheets, with companies shedding assets and cutting dividends for survival.
Interim Chief Executive Ian McHoul declined to specify how much disposals could fetch, but said on a call that he expected the disposals to fund the majority of the reduction in net debt.
Amec said it had net debt of 946 million pounds ($1.34 billion) at the end of 2015, and expected net debt of about 1 billion pounds before including proceeds from disposals.
The company, which replaced its former Chief Executive Samir Brikho in January, said trading profit for the year to Dec. 31 fell to 374 million pounds from 457 million pounds a year earlier.
GPG is involved in the design, supply and erection of circulating fluidised bed (CFB) boilers, a wide range of steam generators and air pollution control equipment. It had revenue of 365 million pounds in 2015. ($1 = 0.7049 pounds)
By Mamidipudi Soumithri in Bengaluru; Editing by Gopakumar Warrier
Source: Reuters
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