Amec Foster Wheeler (AMF) said yesterday the value of its global order book grew by £400million to a record £6.7billion despite “challenging” conditions in the first four months of 2015.
The engineering and project management giant added the rest of 2015 was likely to continue the recent pattern of growth in downstream and Middle East oil and gas markets offset by tougher conditions elsewhere.
AFW also said Amec’s integration of the Foster Wheeler business since a £2billion takeover last year was progressing according to plan.
Chief executive Samir Brikho added: “We are encouraged by the initial customer reactions to our new service offering, including the first revenue synergy wins.
“In the first four months of the year we have experienced some challenging conditions. We have seen the benefits of our low-risk, multi-market model support our top line performance, and deliver growth in the order book to a new record.”
Oil and gas services companies across the world are feeling the pinch from lower crude oil prices as explorers and producers delay projects and defer capital spending.
AFW designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.
The £5.5billion-plus turnover company employs more than 40,000 people in more than 50 countries, with a large presence in Aberdeen.
It reported a 0.9% fall in total revenue for the four months to April 30, compared with a year ago, to £1.6billion. The decline was more severe on a like-for-like basis, down by 3.6%.
AFW said: “The oil and gas market trends seen in recent months have continued, with customers continuing to delay project sanctions for discretionary capital spend – particularly in upstream. Growth in downstream continues, notably in the US and the Middle East.
“In clean energy, we have seen some project delays in the North American renewables market.
“In Europe, recent contract wins in the nuclear and transmission and distribution markets have contributed to the growth in the long-term order book. Delays to design and supply contracts within GPG (global power group) have also impacted our performance in the year to date.”
Recommended for you
