Amec Foster Wheeler plc 2015 results
- 2015 trading performance and proposed final dividend of 14.2p in line with November update
- Year end net debt £946m lower than guidance, with £50m Longview settlement paid in Q1 2016
- GPG: non-cash impairment charge of £308m in 2015
- £6.6bn order book gives confidence for the year ahead
- Refinancing completed in March 2016
- Objective to halve net debt over next 15 months, through non-core disposals (including GPG) and cash generation
- Search for new CEO progressing well
2015 Key performance measures1
|£m unless stated||2015||2014 PF2||Underlying change3||2014 reported|
|Trading cash flow||388||-||-||283|
|Adjusted diluted earnings per share||67.7p||-||-||79.5p|
|Dividend per share||29.0p5||-||-33%||43.3p|
|Order book (bn)||6.6||6.3||+4%||6.3|
2015 Reported under IFRS
|£m unless stated||2015||2014||Change|
|(Loss)/profit before net financing expense||(205)||148||-|
|(Loss)/profit before tax||(235)||155||-|
|Cash flow from operations||220||200||+10%|
|Diluted (loss)/earnings per share||(66.1)p||35.1||-|
Our 2015 trading performance was in line with our November update. We expect the challenging market conditions to continue for the foreseeable future and our priorities remain the same.
Our focus is to maintain our solid operational performance and drive our cost reduction and efficiency programmes. We are also making good progress with our portfolio review, and have identified a number of non-core assets, including GPG, which we intend to sell over the next 15 months. We are targeting to halve our net debt over this timeframe, from disposal proceeds together with the cash generated from our core businesses. The successful refinancing we announced last week further strengthens our position.
2016 is expected to be another year of challenging market conditions across upstream Oil & Gas and Mining. However, our exposure to a number of end markets, including downstream Oil & Gas, renewables and government work means we expect to see only a slight fall in like-for-like revenue, and a reduction in trading margins significantly less than the decline in 2015.
We will host a presentation on the results for analysts and investors at 8.30am today (UK time) at the offices of Nomura International, One Angel Lane London EC4R 3AB. For those unable to attend, dial-in details: UK 020 3059 8125, international +44 20 3059 8125, participant password: 889763
Analyst consensus estimates:
Regularly updated on our website at amecfw.com/investors/consensus-estimates.htm
- Adjusted performance measures used by the group are reconciled to the equivalent IFRS measures in ‘Performance measures’
- Unaudited pro forma information provided for comparative purposes only, assuming the AMEC and Foster Wheeler businesses had been combined from 1 January 2014. A full description of the adjustments can be found at the beginning of ‘Performance measures’
- Excluding the impacts of currency movements and bolt-on acquisitions, measuring change from 2014 pro forma
- Trading profit represents profit before net financing expense excluding exceptional items, the amortisation and impairment of intangible assets and asbestos-related costs (net of insurance recoveries) and the impairment charge at GPG. Trading profit includes the group’s share of the trading profit of joint ventures
- Includes the proposed final dividend for 2015 of 14.2p per ordinary share
Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.
Employing around 40,000 people in more than 55 countries and with 2015 revenues of £5.5 billion, the company operates across the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.
Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology.
Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.
This announcement contains statements which constitute “forward-looking statements”. Forward-looking statements include any statements related to the timing, results and success of contracts, and are generally identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “may,” “continue,” “should” and other similar expressions. Forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Amec Foster Wheeler, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements. Amec Foster Wheeler does not undertake to update any of the forward-looking statements after this date to conform such statements to actual results, to reflect the occurrence of anticipated results or otherwise.