AMEC PLC (AMEC) - Interim Management Statement
RNS Number : 0498R
14 November 2012
Wednesday 14 November
AMEC plc Interim Management Statement
· 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
· Integration of two acquisitions year-to-date on track
· Approximately £300 million of shares purchased under £400 million share
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."
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.
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
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
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,
§ 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
The average number of employees was 28,250 in the period January to October
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.
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
AMEC is firmly focused on delivering revenue and EPS growth and maintaining
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
IMSBIBDBDGBBGDX -0- Nov/14/2012 07:00 GMT
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