North Sea revival helps Amec grow

By DOMINIC JEFF
Published on 14/02/2013 08:41

Acquisitions and a growing North Sea oil & gas services business helped engineer Amec grow profits by more than a quarter last year.

Revenue for 2012 was £4,2 billion, up 28 per cent on 2011, although last year’s figure includes £320 million of procurement, revenue.

In line with its strategy to seek revenues at the expense of margin, the company said adjusted profit before tax grew by a more modest 8 per cent to £336 million.

Chief Executive Samir Brikho said: ”Amec continued to make good progress in 2012, with earnings per share up by 14 per cent and strong operating cash flow. Oil & gas revenue was up strongly, especially in the UK North Sea and in Gulf of Mexico, with good contract wins too in the Middle East.

“Acquisitions strengthened our service offering in nuclear and broadened our footprint in Brazil and Australia. The pipeline of future opportunities remains good. Our £400 million share buyback was completed on 8 February 2013.

“We continue to expect good revenue growth in the conventional oil & gas market in 2013, offsetting softening in the oil sands and mining markets.”

The board is recommending a final dividend of 24.8p per share, which, together with the interim dividend of 11.7p, results in a total dividend of 36.5p per share, an increase of 20 per cent on the 2011 payout.