Record order book for AMEC
Engineering and project management consultancy, AMEC has won – as part of a dedicated consortium – a long-term contract extension for the Shell ONEgas assets in the UK’s Southern North Sea.
ONEgas is a combined business unit of Shell UK Exploration & Production (Shell) and the Nederlandse Aardolie Maatschappij B.V. (NAM).
This major contract includes all 54 of ONEgas's offshore assets along with Shell's Bacton gas plant in the UK and the NAM-operated Den Helder gas plant in the Netherlands.
About 1,250 people are employed by the joint venture, executing maintenance, modifications and capital projects across the UK and Dutch sectors of the North Sea.
AMEC saw 2013 revenues fall three per cent to £3.9 billion but reports a record order book of £4.1bn; it has also confirmed a $3.2bn firm offer for global engeineering and construction management company Foster Wheeler whose major operations are steered from New Jersey and Switzerland.
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.”
• PHOTOGRAPH SHOWS: AMEC chief executive Samir Brikho. Photo by courtesy of AMEC