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Interim Results

Amec Foster Wheeler trading profits fall

10 August 2017 07:58

Amec Foster Wheeler's first half trading profits fell to £162m - down from £177m last time - and adjusted pre-tax profits of £123m - down from £140m.

Revenues of £2,333m were down from £2,842m a year ago.

Results reported under IFRS show a pre-tax profit of £77m against a loss of £446m last time.

Theg roup said the offer from John Wood Group remained on track to complete in Q4.

Chief executive Jon Lewis said: "I am encouraged that the first wave of benefits of the transformation programme we began last year is now evident.

"Operational discipline has improved, we have more than delivered on our cost saving targets and we have also seen the first tangible signs of sustainable growth: in the retained operations, trading margin is up 180 basis points compared to H1 last year with a 2% increase in the order book since the year end.

"Although, as expected, some of our end markets remain challenging, I am pleased that we are making progress across the business - reinforcing the value of a multi-discipline and multi-market customer offering.

"Looking forward, I am confident Amec Foster Wheeler is now moving in the right direction, and I believe that our people and shareholders will have an exciting future as part of the Wood Group, once the deal closes in the fourth quarter."

Separately, the group announced that Clough AMEC had won a landmark contract to provide maintenance services to ammonia facilities in Western Australia that supplied international and domestic fertiliser markets and explosives used in the mining industry. It said the five-year deal, with an option to extend to 2027, was Clough AMEC's first entry into Australia's petrochemicals sector.

It said the JV would provide maintenance planning support and routine maintenance services and shutdowns, as well as the supply of management, tools and systems, to the Yara Pilbara Fertilisers Pty Ltd (YPFPL) and Yara Pilbara Nitrates PTY (YPNPL) facilities located near Karratha. Owned by Yara Pilbara Holdings Ltd., YPFPL is one of the world's largest ammonia production facilities, with a capability of approximately 850,000 metric tons annually.

Story provided by StockMarketWire.com

Related Company: AMFW

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