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Profit progress for AMEC as further North Sea contracts won

Engineering firm AMEC, who operate a Darlington base, revealed a steady rise in profits over 2013 and confirmed its latest North Sea contract for Shell.

The firm reported profit of £255 million on revenues of £3.9 billion for 2013, compared with profit of £254 million from revenues of £4 billion in 2012.

AMEC coincided its results with an announcement it is looking to acquire Swiss engineering outfit Foster Wheeler, who operate a Reading base.

A record order book of £4.1 billion and a promising 9% rise in operating cash flow to £341 million put the firm on strong footing.

Chief executive Samir Brikho said: “AMEC continued to make good progress in 2013, with adjusted earnings per share up by 11 per cent and operating cash flow particularly strong.

“As expected, strong performances from our oil & gas businesses in UK North Sea and the Middle East and from US renewables offset weaker markets elsewhere.

“We continue to expect good underlying revenue growth in 2014, with ongoing strength in the conventional oil & gas and clean energy markets. As a mark of our continued confidence in the outlook and reflecting our strong cash generation, the board is recommending a 15 per cent increase in the dividend for the year.

“I am delighted we have announced separately this morning the firm offer for Foster Wheeler. The combination with Foster Wheeler is financially and strategically attractive. I believe it is a compelling proposition for our shareholders, customers and employees.”

This was posted in Bdaily's Members' News section by Tom Keighley .