Member Article

Falling oil prices result in profit dip at Amec Foster Wheeler

Amec Foster Wheeler, a Knutsford-based engineering and project management company, has reported a pretax profit of £155m, compared to £255m for the previous year.

In November 2014, Amec acquired industry rival Foster Wheeler, merging Foster Wheeler’s E&C Services segment into the new geographical structure and, in January of this year, the company acquired the remaining 4.7% interest in Foster Wheeler AG.

The group saw revenue decline by £175 million in the Americas and by £108 million Europe, but increased by £54 million in the Growth Regions.

Revenue from Oil & Gas was down 13%, Mining was down 14% and E&I down 3%, but revenue from Clean Energy was up 11%.

The group said revenue in all markets was adversely affected by the strength of sterling, particularly against the US dollar as well as the falling price of oil globally.

Chief executive Samir Brikho said: “I am pleased to report that we have delivered 2014 results in line with expectations. Looking ahead, I believe our low-risk, multi-market model combined with the additional benefits from our integration and cost savings programmes, is a strong platform from which to create long-term value for shareholders.”

This was posted in Bdaily's Members' News section by Ellen Forster .