AMEC PLC (AMEC) - Interim Management Statement RNS Number : 0498R AMEC PLC 14 November 2012 Wednesday 14 November AMEC plc Interim Management Statement Highlights · Year-to-date trading in line with expectations · Order intake and forward visibility remain good o Order book £3.6 billion (October 2011: £3.3 billion; June 2012: £3.7 billion) · Integration of two acquisitions year-to-date on track · Approximately £300 million of shares purchased under £400 million share buyback programme AMEC Chief Executive Samir Brikho said: "AMEC continues to make good progress in 2012, reflecting in particular a strong performance in the conventional oil and gas sector. "Demand for our services and investment in our end markets remain good, despite the on-going economic uncertainty. Our new, more agile structure will open up additional opportunities across customers, markets and geographies, which will support further growth. "We are on track to deliver double-digit underlying revenue growth for the full year and we expect to deliver good growth in 2013. We continue to target EPS of greater than 100 pence before 2015." Guidance Unless specifically addressed, guidance remains unchanged from that notified with the interim results. Conference call: a call for analysts and investors will be hosted by Ian McHoul, Chief Financial Officer today at 8.30 am. Next events: AMEC expects to announce results for the year ending 31 December 2012 on Thursday 14 February 2013. Analyst consensus estimates are collated and published on AMEC's website on a periodic basis amec.com/investors/key facts. Contacts AMEC plc: +44 (0) 20 7539 5800 Samir Brikho, Chief Executive Ian McHoul, Chief Financial Officer Sue Scholes, Director of Communications Nicola-Jane Brooks, Head of Investor Relations Media Brunswick Group LLP: + 44 (0)20 7404 5959 Mike Harrison and David Litterick Forward looking statements Any forward looking statements made in this document represent management's best judgment as to what may occur in the future. However, the group's actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the group. Such factors could cause the group's actual results for future periods to differ materially from those expressed in any forward looking statements made in this document. Interim Management Statement 14 November 2012 Group performance Year-to-date trading continues to be in line with expectations. Order intake remains good and includes a mix of new contract awards, scope changes to existing contracts and walk-in work providing good visibility for 2013 and beyond. The order book was £3.6 billion at 31 October (October 2011: £3.3 billion; June 2012: £3.7 billion). Contract awards announced since 30 June include: § The detailed design contract for GDF SUEZ E&P Ltd's Cygnus gas field development, UK North Sea § A project management consultancy services contract for the remediation of Kuwait Oil Company's (KOC) oilfield properties damaged during the 1990-1991 Iraqi invasion of Kuwait § A contract to provide engineering and procurement services for the Balkan Minerals and Mining EAD (BMM) Krumovgrad gold project, Bulgaria § A five-year contract to provide project management support for the refurbishment of National Nuclear Laboratory's (NNL) active handling facility, UK § A three-year contract to provide waste treatment services to the Bohunice nuclear power plant, Slovakia § An engineering, procurement and construction (EPC) contract by International Power Canada for the Brockville solar project, a 10-megawatt (MW) solar photovoltaic plant, Canada. Elsewhere, good progress continues to be made. Whilst mining activity is slowing, conventional oil and gas activity is strong, particularly in the North Sea and Gulf of Mexico where work continues on a number of major projects. The average number of employees was 28,250 in the period January to October 2012. Acquisition update AMEC completed two acquisitions in the first half of the year; Serco's 600-person nuclear Technical Services (TS) business and Unidel, a 260-person energy, resources and infrastructure engineering and consultancy business in Australia. Integration of both acquisitions is on track. Momentum continued in the second half of the year and, in September, AMEC agreed to acquire a 50 per cent stake in Kromav Engenharia Ltd (KROMAV), a privately owned Brazilian offshore oil and gas and marine engineering company. In October, the group formed a joint venture with Samsung Heavy Industries and Samsung Engineering to carry out the design engineering for fixed and floating offshore platforms, FPSOs and subsea pipelines for Samsung's future offshore oil and gas projects. Financial position and net cash The group remains in a strong financial position. Net cash at the end of October was £124 million (October 2011: £430 million; June 2012: £290 million) after share and acquisition-related outflows. Outlook Demand for AMEC's services continues to be good, despite on-going economic uncertainty. The group is on track to deliver double-digit underlying revenue growth for the full-year 2012 and continues to expect to deliver good growth in 2013. AMEC is firmly focused on delivering revenue and EPS growth and maintaining margin discipline. The balance sheet remains strong and provides a robust platform for further growth. The group continues to look at further acquisition opportunities. This information is provided by RNS The company news service from the London Stock Exchange END IMSBIBDBDGBBGDX -0- Nov/14/2012 07:00 GMT
AMEC PLC AMEC Interim Management Statement
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