• Aggregate of £246m proceeds from non-core disposal programme expected by end of Q2
    • £137m from disposal of core boiler business of GPG due in Q2
    • £18m from disposal of Italian wind farms due in Q2
    • £91m already received from three other disposals
  • Process to sell nuclear operations underway with considerable interest
    • Completion expected in Q3

Global Power Group (GPG)

This morning, the Company signed an agreement to sell its core boiler business to Sumitomo Heavy Industries, Ltd for £137m. The proceeds for this business are consistent with the £180m book value for the whole of GPG as at June 2016.

The core boiler business represented £180m of the revenues and £9m of the trading profit within the GPG full year 2015 results. Gross assets at December 2015 were £243m. In provisional 2016 full year numbers the core boiler business contributed revenues of £200m and trading profit of £25m.

The sale is conditional on customary regulatory approvals in certain jurisdictions and is expected to be completed during the second quarter.

The core boiler business designs, manufactures and installs circulating fluidised bed boilers which burn a variety of fuels in an efficient and environmentally friendly manner and are employed in power generation plants.

The balance of GPG’s steam generator businesses, the heat recovery steam generator and industrial boilers businesses are expected to be sold during 2017, while the North American aftermarket services business is being retained, and since the beginning of 2017 has been operating as part of Power & Process.


The Company sold Aquenta Consulting Pty Ltd., a specialist consultancy business based in Australia, to Jacobs Group (Australia) Pty Ltd for £21m in January. In provisional full year results for 2016, Aquenta contributed £4m of trading profit.

Infrastructure assets

The Company sold its 85% interest in Petropower Energía Limitada to ENAP Refinerías S.A. for £40m in December 2016. Until being classified as an ‘asset held for sale’ in June 2016, Petropower was reported under GPG.

The Company received £30m of proceeds from the sale of its 23% interest in Incheon Bridge Co., Ltd. to Private Infrastructure Investment Korea Co. Ltd in December 2016. The transaction remains conditional upon South Korean government approval.

The Company signed an agreement to sell Amec Foster Wheeler Power S.r.l., which operates two wind farms in Italy, to Enel Green Power S.p.A. for £18 million in December 2016. This is expected to close in May 2017.

Collectively the infrastructure assets contributed £14m of trading profit to the provisional full year 2016 results.


The Board launched a process to sell the Company’s nuclear operations in December 2016, and a competitive process is now underway. The Company has received a high level of interest and expects indicative bids later this month. The process is expected to conclude in Q3.

In provisional full year results for 2016, the nuclear operations contributed revenue of £274m and trading profit of £16m.


In aggregate, the Board now expects to receive £246m of proceeds before the end of the second quarter, with additional proceeds from the nuclear assets expected to be received in the third quarter, and from the remaining GPG assets in the fourth quarter. The proceeds will be used to reduce net debt.

We continue to consider the right mix of investment and funding options which in aggregate will lead to an appropriate balance sheet and create a strong ongoing business. A further update will be given with the full year results and in the operational and strategy presentations at the capital markets event on 21st March 2017.

This announcement contains inside information, and has been approved by Alison Yapp, Chief General Counsel and Company Secretary.