AMEC - 2013 Full Year Results

Amec is a FTSE 100 company operating in the energy services and engineering sector, with major operations centres based in the UK and Americas and offices and projects in around 40 countries worldwide.

Its goal is to deliver profitable, safe and sustainable projects and services for their customers in the oil and gas, mining, clean energy, environment and infrastructure markets, including sectors that play a vital role in the global and national economies and in people’s everyday lives.

Customers, in both the private and public sector, are among the world’s biggest and best in their fields - BP, Shell, EDF, National Grid and U.S. Navy to name just a few.

They have today released results for the full year to 31st December 2013 (link via Investegate). At £3.9m, revenues were down 3% on the prior year, though margins were better, up 40 basis points, at 8.6%. Earnings (EBITDA) also improved 3% to £343m, and at 87.2p earnings per share(from continuing operations) increased 11% on the previous year.

Amec's balance sheet remains in a strong financial position, with net cash of £121m - up from £99m in 2012. Operating cash flow was £341m (2012 £312m).

CEO Sam Briko commented, "As expected, strong performances from our oil and 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 market"

Amec have a progressive dividend policy and matching the rise of 15% in 2012, they are proposing to lift the current year from 36.5p to 42p. The dividend paid in 2004 was 11p which gives a CAGR (compound annual growth rate) over the past 10 years of 14.4% - very impressive!

In a separate statement AMEC confirmed investors it will be acquiring Foster Wheeler in a share and cash deal to the value of US$3.3bn. Sam Brikho said "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."

The results have been well received and the share price is up 3% at 1125p and yield 3.7%.

I am happy to continue holding this one which replaced Petrofac in my ISA portfolio in 2011.