Amec trades in line but flags up currency hit

AMEC, the international engineering group with major operations in nuclear and green energy in Cheshire, says it is on track to meet City expectations, although the strengthening of the pound against North American currencies would hit earnings.

The company, which provides services and equipment for the oil and gas, mining, nuclear and renewable energy sectors, added that the £1bn+ acquisition of Swiss-based rival Foster Wheeler would be completed by the third quarter.

The Foster Wheeler deal will help Amec expand into growing markets such as Latin America and the Middle East, as well as enter the US mid-stream industry, which has become increasingly lucrative due to the shale gas boom.

Amec said less favourable exchange rates this year compared to last would reduce revenue by around £250m and EBITA (earnings before interest, tax and amortisation) by around £25m for the full year.

The order book at March 31  2014 was £4.2bn, up from £4.1bn at the end of 2013.

Chief executive Samir Brikho said: “Amec as continued to trade in line with expectations for 2014 and our record order book gives us confidence in our continued growth.    

“The acquisition of Foster Wheeler remains on track, with integration planning well underway and completion expected in the third quarter. We believe the combination of Amec and Foster Wheeler is a compelling one, for our shareholders, our customers and our employees.”