One of the North Sea’s largest engineering companies says it expects to hit targets for 2014 after enjoying a growth in orders.
Amec, which recently confirmed a six-year deal to provide engineering services for Nexen’s North Sea assets, saw its orderbook swell to £4.2billion by the end of the first quarter – up £500,000 on the same period last year.
But the firm, which expects to complete the takeover of Foster Wheeler during the third quarter of 2014, sounded a note of caution over currency rates as the strengthening pound against the US dollar threatens to hit earnings.
Revenue is set to drop by around £250million, with earnings predicted to fall by £25million, due to the exchange rate, the company said, with current rates ‘less favourable’ than 2013.
But the firm insisted trading remained in line with expectations.
“Amec has continued to trade in line with expectations for 2014 and our record order book gives us confidence in our continued growth,” said chief executive Samir Brikho.
“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.”
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