London, UK,
27
August
2015
|
07:00
Europe/London

Half-year results 2015

Samir Brikho, Chief Executive
In the challenging conditions we find in many of our markets our priorities are clear: to make the most of the integrated Amec Foster Wheeler platform, innovate and adapt to offer customers relevant services and continue to keep a tight control on our own costs. 

I continue to believe our low-risk, multi-market model is a strong platform from which to create long-term value for shareholders.
Samir Brikho, Chief Executive
Summary

Amec Foster Wheeler released its half-year results on Thursday 27 August 2015

H1 2015: Key performance measures1

£m unless stated,
for 6 months ended 30 June
2015      2014 PF2 Underlying change3 2014
AMEC only
Continuing operations        
Scope revenue4 2,581 2,613 -4% 1,808
Trading profit5 188 243 -24% 152
Trading margin 7.3% 9.3%6 -200bps6 8.4%
Trading cash flow 84 - - 39
Cash conversion 45% - - 26%
Adjusted diluted earnings per share 34.0p - - 39.1p


H1 2015: Reported under IFRS

£m unless stated,
for 6 months ended 30 June
2015 2014
AMEC only
Change
Continuing operations      
Revenue 2,664 1,858 +43%
Profit before net financing expense 83 76 +9%
Profit before tax  73 83 -12%
Cash flow from operations  (9) 11 n/m
Diluted earnings per share  14.5p 19.8p -27%
Dividend per share  14.8p 14.8p -

 

Outlook statement
Our expectations for the group’s full year results remain consistent with previous guidance: underlying scope revenue is expected to be modestly lower than last year’s pro forma result, and we continue to expect a reduction in trading margins. For the full year, based on current forecasts, scope revenue will benefit by c. £50 million from a stronger US dollar.

We expect to see challenging market conditions continue – particularly in upstream Oil & Gas and Mining. Downstream Oil & Gas, particularly pet-chem, continue to be resilient. Clean Energy E&C scope revenue is likely to be lower than in 2014, due to delays to the start of work for significant projects in our order book. Our strong pipeline also gives us confidence that we will see further progression in the order book.


Notes:

  1. Adjusted performance measures used by the group are reconciled to the equivalent IFRS measures in the ‘Performance measures’ section
  2. 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’
  3. As reported by AMEC
  4. Scope revenue represents reported revenue less pass-through procurement revenue
  5. Trading profit represents profit before net financing expense excluding exceptional items, the amortisation of intangible assets and asbestos-related costs (net of insurance recoveries). Trading profit includes the group’s share of the trading profit of joint ventures
  6. Includes £20m one-off income from a license settlement within GPG. The impact on group trading margin is c. 80 basis points, and excluding this, the comparable margin in 2014 was 8.5%.


Results presentation
We will host a presentation on the results for analysts and investors at 8.30am (UK time) today at the offices of Nomura International, One Angel Lane London EC4R 3AB. For those unable to attend, dial-in details are as follows: 

  • UK: 0800 368 0649
  • International: +44 20 3059 8125
  • Code: 2490313

An accompanying slide pack will also be available shortly before the meeting at: amecfw.com/investors/results-centre/half-year-results-2015
 

Analyst consensus estimates
Regularly updated on our website at amecfw.com/investors/consensus_estimates

For the full version of these results please see the RNS

Boilerplate

Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.

 

With pro-forma 2014 scope revenues of £5.5 billion and over 40,000 people in more than 55 countries, the company operates across the whole of 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 (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.