Thursday, 26 March 2015

Amec Foster - Final Results

Amec Foster Wheeler is a FTSE 250 company with a market cap. of around £3.8bn. It mainly operates 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. In the past year, AMEC completed the acquisition of Foster Wheeler in a share and cash deal to the value of US $3.3bn.

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 2014 (link via Investegate). At £3.99m, revenues were marginally ahead on the prior year. However, the dramatic fall in oil and commodity prices has had an impact on earnings and profits.

Adjusted profits are down 5% at £317m - earnings per share down 9% at 79.5p (2013  87.2p).

CEO Sam Brikho commented, "I am pleased to report that we have delivered 2014 results in line with expectations. Looking ahead, I believe our low-risk, multi-market model combined with the additional benefits from our integration and cost savings programmes, is a strong platform from which to create long-term value for shareholders."

Amec Foster have a progressive dividend policy and although profits and earnings have fallen this year, the management feel sufficiently confident to increase the full year dividend by 3.1% to 43.3p (2013  42p). The dividend is covered 1.8x by adjusted earnings.

At the time of posting, the share price is down around 3% at 940p giving a yield of 4.6%.


  1. Thanks for this John. AMFW are still right up there towards the top of my HYP top up spreadsheet. A share price fall of 3% makes them even more so.

  2. You are welcome!

    I like Amecs diverse range of activities which provides a degree of resilience, however, I suspect the next few years will be quite tough going and we are not likely to see the growth in profits/divis experienced over the past decade. Not too sure about the valuation of recent acquisition but there we are, done now.

    Good luck with your HYP and I hope you are starting to resolve some of the issues you have posted on recently!